Clariant agrees to acquire Lucas Meyer Cosmetics, a leading provider of high value ingredients for the cosmetics and personal care industry - Seite 3

The transaction will create considerable value for Clariant’s shareholders. With ~ 10 % sales growth¹, outstanding profitability and high cash conversion, Lucas Meyer Cosmetics is accretive to Clariant’s growth, margin and cash flow profile and exceeds Clariant’s financial target metrics for 2025. The transaction is expected to be mid-single digit percentage accretive to EPS² from year one onwards. Given the strong strategic fit and high complementarity of the businesses, Clariant’s ambition is to grow Lucas Meyer Cosmetics’ annual sales from ~ USD 100 million to ~ USD 180 million by 2028.

Financing and expected timetable

The funding for the acquisition has been secured by a fully committed bridge facility which is intended to be refinanced soon after completion. On completion, Clariant’s net leverage is expected to moderately increase to ~ 2.8x times EBITDA including pension and lease liabilities, preserving the Group’s prudent capital structure and balance sheet strength. Clariant expects no change to its investment grade credit rating.

The acquisition is expected to close in the first quarter of 2024.

Clariant third quarter 2023 reporting – Conference Call

Clariant also published its third quarter / nine months figures 2023 today. The company will host a conference call for analysts and investors covering the proposed Lucas Meyer Cosmetics acquisition as well as the third quarter / nine months figures 2023 at 15.00 CET (14.00 GMT, 10.00am EST).

To register for the call please click here.

To follow the real-time webcast please click here.

CORPORATE MEDIA RELATIONS   Jochen Dubiel Phone [phone] [e-mail]   Anne Schäfer Phone [phone] [e-mail]    Ellese Caruana Phone [phone] [e-mail]

INVESTOR RELATIONS   Andreas Schwarzwälder Phone [phone] [e-mail]   Thijs Bouwens Phone [phone] [e-mail]

Follow us on X, Facebook, LinkedIn, Instagram.   This media release contains certain statements that are neither reported financial results nor other historical information. This document also includes forward-looking statements. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Clariant’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors such as: the timing and strength of new product offerings; pricing strategies of competitors; the Company’s ability to continue to receive adequate products from its vendors on acceptable terms, or at all, and to continue to obtain sufficient financing to meet its liquidity needs; and changes in the political, social and regulatory framework in which the Company operates or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. Clariant does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials.