Clariant to buy Lucas Meyer
Clariant has agreed to acquire Lucas Meyer Cosmetics of Québec, Canada, a supplier of cosmetics and personal care ingredients from International Flavours & Fragrances. The $810 million, 16.3 x EBITDA deal is expected to close in Q1 2024, subject to regulatory approvals and customary closing conditions.
CEO Conrad Keijzer said that this would “strengthen our position as a true speciality chemical company, our exposure towards consumer markets, and our footprint in North America, while supporting our goal to accelerate customer- and sustainability-driven innovation”. In addition, he said, combining their two portfolios will make Clariant “a leader in the high value cosmetic ingredients space, one of the most attractive, profitable, and fastest-growing speciality chemicals markets”.
Lucas Meyer is claimed to have strong marketing and innovation capabilities, including global R&D and regional application centres, as well as an asset-light model and outsourced production that has helped to generate sales growth of about 10%/year. Clariant aims to boost Lucas Meyer’s sales from $100 million/year now to $180 million/year by 2028 as a result of “the strong strategic fit and high complementarity of the businesses”.