Clariant completes acquisition of Lucas Meyer Cosmetics

Clariant announced that it has successfully completed the acquisition of Lucas Meyer Cosmetics, a subsidiary of IFF. Lucas Meyer Cosmetics is a leading supplier of high-value raw materials in the cosmetics and personal care industry, with an enterprise value (EV) of $810 million (approximately 720 million Swiss francs) for this transaction. The acquisition price will be determined based on the usual adjustment of net debt and working capital.

Conrad Keijzer, CEO of Clariant, said, "The successful acquisition of Lucas Meyer Cosmetics is a typical example of our commitment to a purpose driven growth strategy, while also effectively promoting our acceleration of customer and sustainable development oriented innovation goals. The complementary regional advantages and capabilities of both parties in customer portfolio, product portfolio, research and marketing make the integrated Klein and Lucas Meyer Cosmetics leading solution providers for high-value personal care brands."

Christian Vang, President of the Care Chemicals business unit and the Americas region of Klein, said, "I believe the acquisition of Lucas Meyer Cosmetics is an important step forward for the Care Chemicals business unit. The demand for high-value natural ingredients from customers and consumers is increasing day by day. I warmly welcome 190 high-quality professionals to join the Klein family. We look forward to exciting development opportunities together, and expect our annual sales to increase from approximately $100 million to $180 million by 2028."

This transaction further drives the transformation of Klein's business portfolio, making it more focused on the high growth, high profit, and high cash flow specialty chemicals business and consumer end markets, in response to the growing demand for natural and sustainable products in the market. This acquisition also enhances the leading position of Klein's Care Chemicals business unit in the active and functional cosmetics raw material market.

Starting from April 2, 2024, Klein will begin integrating Lucas Meyer Cosmetics into its nursing chemicals business unit. The funding for this acquisition comes from senior unsecured bonds of 350 million Swiss francs (200 million Swiss francs, 3-year, with an annual interest rate of 2.375%; 150 million Swiss francs, 7-year, with an annual interest rate of 2.75%) issued in March 2024, as well as a multi currency bridge financing loan with an annual interest rate of approximately 4.4%. The plan is to refinance in 2024 based on market conditions. Klein expects that its investment credit rating will not change after the transaction is completed.