Clariant to Acquire Lucas Meyer Cosmetics
Clariant today announced that it has agreed to acquire Lucas Meyer Cosmetics, a provider of high-value ingredients for the cosmetics and personal care industry, from International Flavors & Fragrances (IFF) for a total cash consideration of €765 million ($810 million).
The deal is on a debt-free, cash-free basis, equivalent to an EV/ reported EBITDA multiple (LTM August 2023) of 16.3x. The proposed transaction is subject to regulatory approvals and customary closing conditions and is expected to close in the first quarter of 2024.
Conrad Keijzer, Chief Executive Officer of Clariant, commented “By combining our personal care ingredients portfolio with Lucas Meyer Cosmetics, Clariant will become a leader in the high-value cosmetic ingredients space, one of the most attractive, profitable, and fastest-growing specialty chemicals markets."
Established in 1999 in Québec, Canada, Lucas Meyer Cosmetics is a producer of high-value cosmetic ingredients, excelling in global R&D and strong marketing, generating around €95 million ($100 million) in revenue. Their customer-centric model ensures significant global brand recognition.
"Combining our respective strengths, including the R&D and innovation capabilities of Lucas Meyer
Cosmetics, backed by a strong brand, will enable us to deliver a strong increase in annual sales to
$180 million (€170 million) in 2028 from around $100 million (€95 million) currently", said Christian Vang, President of the Clariant Business Unit Care Chemicals and the Americas region.
The proposed deal allows Clariant to further transform its portfolio towards high-growth, high-margin, and highly cash-generative specialty chemicals businesses and consumer end-markets underpinned 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 North America presence in the Care Chemicals business unit. The acquisition is expected to close in the first quarter of 2024.
