Clariant, a specialty chemical company with a focus on sustainability, has finalized the purchase of Lucas Meyer Cosmetics from IFF. Lucas Meyer Cosmetics is a prominent supplier of premium ingredients for the cosmetics and personal care sector. The acquisition was completed for an Enterprise Value (EV) of USD 810 million (~ CHF 720 million). The actual purchase price will be adjusted for customary net debt and working capital considerations.
The acquisition marks a significant shift in Clariant’s portfolio towards specialty chemicals businesses serving high-growth, high-margin, and cash-generative consumer end-markets, particularly driven by the rising demand for natural and sustainable products. This move enhances Clariant’s presence in the active and functional cosmetic ingredients market within its Business Unit Care Chemicals.
Effective from April 2, 2024, Lucas Meyer Cosmetics will be integrated into Clariant’s Business Unit Care Chemicals. The acquisition was financed through the issuance of a CHF 350 million dual-tranche senior unsecured bond in March 2024 (consisting of CHF 200 million for 3 years at 2.375% and CHF 150 million for 7 years at 2.75%), as well as through a multi-currency bridge facility at an interest rate of approximately 4.4% per annum. This bridge facility is anticipated to be refinanced in 2024, subject to prevailing market conditions. Clariant anticipates that its investment-grade credit rating will remain unchanged following the transaction’s completion.
“I see the acquisition of Lucas Meyer Cosmetics as a significant step forward for Care Chemicals. Customers as well as consumers increasingly demand high-value natural ingredients,” said Christian Vang, President of the Clariant Business Unit Care Chemicals and the Americas region.
“I extend a warm welcome to 190 highly qualified professionals as our new colleagues at Clariant. We jointly look forward to exciting growth opportunities and expect to increase annual sales to USD 180 million in 2028 from around USD 100 million currently.” Christian Vang added.
