Swiss chemicals company Clariant has reached an agreement to acquire Lucas Meyer Cosmetics, a leading manufacturer of high-value active and functional cosmetics ingredients, from International Flavors and Fragrances (IFF) for $810 million. The deal represents a 16.3-times multiple based on Lucas Meyer Cosmetics’ earnings before interest, taxes, depreciation, and amortization reported in August 2023. The transaction is expected to be completed in the first quarter of 2024.
Clariant stated that the acquisition of Lucas Meyer Cosmetics aligns with Clariant’s purpose-led growth strategy and reinforces its position as a specialty chemical company. It will expand Clariant’s presence in consumer markets and enhance its footprint in North America while supporting its commitment to driving customer- and sustainability-driven innovation. Conrad Keijzer, CEO of Clariant, stated that the acquisition will position Clariant as a leader in the high-value cosmetic ingredients space, one of the most attractive, profitable, and fast-growing segments within the specialty chemicals market. He emphasized the experienced leadership team and track record of Lucas Meyer Cosmetics and expressed confidence in the value creation and profitable growth that can result from combining the two companies’ portfolios.
Founded in 1999 and headquartered in Quebec, Canada, Lucas Meyer Cosmetics is a leader in the market for high-value active and functional cosmetic ingredients, and Clariant’s goal is to increase Lucas Meyer Cosmetics’ annual sales from approximately $100 million to approximately $180 million by 2028.
IFF, in a separate statement, confirmed that the cash proceeds from the proposed transaction, net of taxes and expenses, will be utilized to reduce outstanding debt. The sale of the cosmetic ingredients business to Clariant aligns with IFF’s portfolio optimization strategy and its focus on strengthening the company’s capital structure.
IFF had initially acquired Lucas Meyer Cosmetics in 2015 for approximately 283 million euros. The proposed sale to Clariant represents a strategic shift for IFF, allowing them to concentrate on their core businesses and maximize growth and returns.