Clariant agrees to acquire Lucas Meyer Cosmetics, a leading provider of high value ingredients for the cosmetics and personal care industry

AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR

 

• Clariant agrees to acquire Lucas Meyer Cosmetics for a total consideration of USD 810 million (~ CHF 720 million)
• Fully aligned with Clariant’s purpose-led growth strategy, strengthens position as a true specialty chemical company
• Will expand Clariant’s reach into high value cosmetic ingredients space, based on customer-driven innovation and natural solutions
• Strong strategic fit with complementary customer and product portfolios, geographic footprint, and research capabilities
• Ambition to grow Lucas Meyer Cosmetics annual sales from ~ USD 100 million to ~ USD 180 million by 2028
• Lucas Meyer Cosmetics financial profile accretive to growth, margins, and cash flow; significantly exceeding Clariant’s 2025 target metrics
• Closing expected in the first quarter of 2024

MUTTENZ, 30 OCTOBER 2023

Clariant, a sustainability-focused specialty chemical company, today announced that it has agreed to acquire Lucas Meyer Cosmetics, a leading provider of high value ingredients for the cosmetics and personal care industry, from International Flavors & Fragrances (IFF) for a total cash consideration of USD 810 million (~ CHF 720 million) 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.

“The proposed acquisition of Lucas Meyer Cosmetics marks another major step forward for Clariant’s purpose-led growth strategy. It 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. In addition, Lucas Meyer Cosmetics brings a highly experienced leadership team with an excellent track record”, said Conrad Keijzer, Chief Executive Officer of Clariant. “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. 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.”