Clariant acquires Canadian Lucas Meyer Cosmetics for $1.09 billion

On October 30, 2023, Clariant, a sustainability-focused specialty chemical company, agreed to acquire Lucas Meyer Cosmetics from International Flavors & Fragrances (IFF) for approximately $1.09 billion (US$810 million) on a debt-free, cash-free basis. The transaction represented an EV/reported EBITDA multiple of 16.3x (LTM August 2023). The deal was subject to regulatory approvals and customary closing conditions, with an expected closure in the first quarter of 2024.

Clariant's CEO, Conrad Keijzer, highlighted the acquisition as a significant step in their growth strategy, enhancing their specialty chemicals portfolio and North American footprint while advancing customer- and sustainability-driven innovation. The acquisition aimed to establish Clariant as a leader in the high-value cosmetic ingredients market, a rapidly growing and profitable sector.

Christian Vang, President of Clariant’s Care Chemicals and Americas region, emphasized the complementary nature of Lucas Meyer Cosmetics’ products and customer base. He projected that the combined strengths would drive annual sales from around $135 million (US$100 million) to $243 million (US$180 million) by 2028.

Founded in 1999 and headquartered in Québec, Canada, Lucas Meyer Cosmetics specializes in high-value active and functional cosmetic ingredients. Known for its superior marketing, innovation capabilities, and asset-light, cash-generative model, Lucas Meyer boasts strong brand recognition and significant profitability, with revenues around $135 million (US$100 million).

Deal Type

Merger & Acquisition

Industry

Other

Transaction

$ 1,090,000,000

Deal Status

Closed

Closing Date

02 April 2024