Swiss speciality chemical company Clariant has agreed to acquire personal care ingredient maker Lucas Meyer Cosmetics from IFF for $810m.
Clariant said the acquisition would expand its reach into high value cosmetic ingredients based on customer-driven innovation and natural solutions.
Its ambition is to grow Lucas Meyer Cosmetics annual sales from $100m to $180m by 2028.
Lucas Meyer Cosmetics was founded in 1999 and is headquartered in Québec, Canada.
“The proposed acquisition will strengthen our position as a true specialty chemical company, our exposure towards consumer markets, and our footprint in North America, while supporting our goal to accelerate customer- and sustainability-driven innovation,” said Clariant chief executive Conrad Keijzer.
“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,” he added.
The proposed transaction is subject to regulatory approvals and customary closing conditions and is expected to close in the first quarter of 2024.
The total cash consideration of $810m (CHF 720m) on a debt-free, cash-free basis is equivalent to an EV/reported EBITDA multiple (LTM August 2023) of 16.3x.