Clariant completes cosmetic buy

Clariant has completed the previously announced acquisition of Lucas Meyer Cosmetics, a German-based maker of cosmetics and personal care ingredients, from IFF. The deal is based on an enterprise value of $810 million, subject to customary net debt and working capital adjustments.

Clariant said that this continues its move toward “high-growth, high-margin and highly cash-generative speciality chemicals businesses and consumer end-markets, underpinned by accelerating demand for natural and sustainable products”. It added that there is a complementarity between the two firms in customer and product portfolio, regional strongholds and capabilities in R&D, and marketing.

Lucas Meyer has been consolidated into Clariant’s Care Chemicals business unit, which is projected to grow from sales of $100 million/year now to $180 million/year. The deal was funded by issuing a dual-tranche senior unsecured bond for about $384 million over seven years. Clariant expects no change to its investment-grade credit rating after closing.