Clariant, a specialty chemicals company focused on sustainability, announced that it has agreed to acquire Lucas Meyer Cosmetics, a leading supplier of high-value ingredients to the cosmetics and personal care industry, from International Flavors & Fragrances (IFF) for a total cash consideration of $810 million. The proposed transaction is subject to customary regulatory approvals and closing conditions, and is expected to close in the first quarter of 2024.
"The proposed acquisition of Lucas Meyer Cosmetics marks another major step in Clariant's focused growth strategy. It will strengthen our position as a true specialty chemicals company, our exposure to consumer markets and our presence in North America, while supporting our goal of accelerating customer-focused innovation and sustainability. In addition, Lucas Meyer Cosmetics brings a highly experienced management team with an excellent track record.said Conrad Keijzer, CEO of Clariant. By combining our personal care ingredients portfolio with Lucas Meyer Cosmetics, Clariant will become a leader in high-value cosmetic ingredients, one of the most attractive, profitable and fastest-growing specialty chemicals markets. With this step, we will build on our successful track record of pursuing and integrating targeted acquisitions to enable value creation and profitable growth."
"Lucas Meyer Cosmetics represents an important and exciting growth opportunity for Care Chemicals. It fits in perfectly with our business, given the complementary nature of our customers and products. The combination of our respective strengths, including the R&D and innovation capabilities of Lucas Meyer Cosmetics, supported by a strong brand, will enable us to achieve a strong increase in annual sales, to $180 million in 2028, from around $100 million today. We look forward to welcoming our new colleagues after closing and leveraging our respective capabilities, expertise and passion."said Christian Vang, President of Clariant's Care Chemicals Business Unit and of the Americas region.
Lucas Meyer Cosmetics, founded in 1999 and headquartered in Quebec, Canada, is a leading player in the active and functional cosmetic ingredients market. Lucas Meyer Cosmetics' competitive edge stems from its marketing and innovation capabilities, including global R&D and regional application centers, which translate into a strong financial performance with approximately $100 million in revenues and very attractive profitability. The company is also highly cash generative due to its asset-light model and outsourced production. In addition, Lucas Meyer Cosmetics has a customer-centric business model, which translates into strong brand recognition with customers worldwide.
Solid strategic and financial justification
The acquisition is based on a compelling strategic rationale given the complementary nature of Clariant and Lucas Meyer Cosmetics in terms of customer portfolio, product portfolio, regional strongholds and R&D and marketing capabilities, making the combination of Clariant and Lucas Meyer Cosmetics a uniquely positioned solutions provider for high value-added products. personal care brands. The proposed transaction enables Clariant to further transform its portfolio towards high-growth, high-margin, cash-generative specialty chemicals businesses and towards consumer end-markets supported by accelerating demand for natural and sustainable products. It will increase Clariant's exposure to the active and functional cosmetic ingredients market and strengthen its presence in North America in the Care Chemicals business unit.
Given the strong strategic fit and complementary nature of the businesses, Clariant's ambition is to increase Lucas Meyer Cosmetics' annual sales from $100 million to $180 million by 2028.
Photo credits:
- Clariant: DR
