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Clariant to Acquire Lucas Meyer Cosmetics in $810 Million Deal

Published October 31, 2023
Published October 31, 2023
Nataliya Smirnova via Unsplash

Clariant, a sustainability-focused specialty chemical company, 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) in an $810 million deal.

WHO: Lucas Meyer Cosmetics, founded in 1999 and headquartered in Québec, Canada, is a leading player in the high-value active and functional cosmetic ingredients market. Lucas Meyer Cosmetics’ competitive edge stems from its superior marketing and innovation capabilities, including global R&D and regional application centers.

Clariant is a focused, sustainable, and innovative specialty chemical company that reports in three business areas: Care Chemicals, Natural Resources, and Catalysis.

International Flavors & Fragrances is a leading innovator of sensorial experiences that move the world. A passion for exploration drives them to co-create unique products that consumers taste, smell, or feel in fine fragrances and beauty, detergents, and household goods, as well as beloved foods and beverages.

WHY: The acquisition is underpinned by a compelling strategic rationale given Clariant’s and Lucas Meyer Cosmetics’ complementarity in customer portfolio, product portfolio, regional strongholds, and capabilities in R&D and marketing, making the combination a uniquely positioned solutions provider for personal care brands. The proposed transaction allows Clariant to further transform its portfolio towards high-growth, high-margin, and highly cash-generative specialty chemicals businesses and consumer end markets grounded in an accelerating demand for natural and sustainable products. The deal will increase Clariant’s exposure to the active and functional cosmetic ingredients market and strengthen its North American presence in the Care Chemicals business unit.

IN THEIR OWN WORDS: “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.”

“Lucas Meyer Cosmetics represents a significant, exciting growth opportunity for Care Chemicals. It is a perfect fit with our business, given the complementarity of our customers and products. Combining our respective strengths, including the R&D and innovation capabilities of Lucas Meyer Cosmetics, backed by a strong brand, will enable us to deliver a strong increase in annual sales to $180 million in 2028 from around $100 million currently. We look forward to welcoming our new colleagues after closing and leveraging our respective capabilities, expertise, and passion,” said Christian Vang, President of the Clariant Business Unit Care Chemicals and the Americas region.

“Consistent with our announcement during our second-quarter earnings, we are executing our portfolio optimization strategy to strengthen our capital structure,” IFF CEO Frank Clyburn said in the statement. “Aligned with our best-owner mindset, the proposed sale of our cosmetic ingredients business to Clariant will allow us to focus on our core businesses, maximizing growth and returns."


  • Clariant has agreed to acquire Lucas Meyer Cosmetics from International Flavors & Fragrances (IFF) for a total consideration of $810 million, equivalent to a 16.3x multiple before interest, taxes, depreciation, and amortization reported in August 2023. 
  • Clariant’s ambition is to grow Lucas Meyer Cosmetics’ annual sales from $100 million to $180 million by 2028 with highly attractive profitability. 
  • The Lucas Meyer Cosmetics business is highly cash-generative due to its asset-light model and outsourced production.
  • IFF acquired Lucas Meyer Cosmetics in 2015 for about €283 million. IFF said cash proceeds from the transaction, net of taxes and expenses, would be used to reduce debt.

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