Clariant has agreed to acquire Lucas Meyer Cosmetics, a Canada-headquartered cosmetic ingredients company, for US$810m.
Founded in 1999, Québec-based Lucas Meyer Cosmetics specialises in high value active and functional cosmetic ingredients, and boasts revenues of $100m.
The Swiss speciality chemicals giant said the proposed transaction would strengthen its position in North America, while the two businesses’ complementary product portfolios would support its goal to accelerate customer and sustainability-driven innovation.
“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,” commented Clariant’s CEO, Conrad Keijzer.
“With this step, we will build on our successful track record of pursuing and integrating bolt-on acquisitions to enable value creation and profitable growth.”
Christian Vang, President of the Clariant Business Unit Care Chemicals and the Americas region, added: “Lucas Meyer Cosmetics represents a significant, exciting growth opportunity for Care Chemicals.
“It is a perfect fit with our business, given the complementarity of our customers and products.
“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 $180m in 2028 from around $100m currently.”
Lucas Meyer Cosmetics has been part of the International Flavors & Fragrances family since 2015 when IFF acquired the company from Unipex Group for €283m.
Hero ingredients in its line-up include 2023 launches Regenight and Immunight, which improve the quality and beauty-boosting effects of sleep; Lecigel, a gelling agent with emulsifying and cooling properties; and Greyverse, which acts on the two main factors behind the hair greying process.
Rumours began circulating that IFF was weighing up a sale in May this year, with a Bloomberg report citing sources with knowledge of the matter.
At the time, fellow beauty ingredients supply giants Croda, Givaudan and Symrise were cited as potentially interested parties.
The proposed transaction is subject to regulatory approvals and customary closing conditions, but is expected to close in the first quarter of 2024.