Swiss chemicals company Clariant has announced a strategic move to acquire Lucas Meyer Cosmetics, renowned for producing high-value active and functional cosmetics ingredients, from International Flavors and Fragrances (IFF) for $810 million. This significant acquisition aligns with Clariant’s purpose-led growth strategy, aiming to reinforce its position as a specialized chemical company, expand its presence in consumer markets, and strengthen its footprint in North America.

Conrad Keijzer, Chief Executive Officer of Clariant, expressed enthusiasm about the proposed acquisition, stating, “It will strengthen our position as a true specialty chemical company, our exposure toward consumer markets, and our footprint in North America, while supporting our goal to accelerate customer- and sustainability-driven innovation.” Keijzer also highlighted the potential of the acquisition to make Clariant a leader in the high-value cosmetic ingredients sector, emphasizing its attractiveness as one of the most profitable and fastest-growing specialty chemicals markets. The integration of Lucas Meyer Cosmetics’ portfolio with Clariant’s personal-care ingredients is expected to yield synergies, fostering innovation, and driving profitable growth.

The acquisition includes not only a strategic business move but also brings on board a highly experienced leadership team from Lucas Meyer Cosmetics, recognized for its excellent track record in the industry.

In response to the transaction, IFF released a separate statement, confirming that cash proceeds from the proposed acquisition will be utilized to reduce outstanding debt. Frank Clyburn, CEO of IFF, articulated the company’s commitment to portfolio optimization to strengthen its capital structure. He stated, “The proposed sale of our cosmetic ingredients business to Clariant will allow us to focus on our core businesses, maximizing growth and returns.”