On the international market for cosmetics, the number of takeover activities has increased significantly in the last days. On Monday, Swiss specialty chemicals company Clariant announced that it will acquire the Canadian cosmetics supplier Lucas Meyer Cosmetics for 810 million US dollars (USD – equivalent to about 765.2 million euros).

In addition, rumors are intensifying that the German investor Aurelius Group is interested in the purchase of the cosmetics chain The Body Shop. According to press reports, Aurelius is currently in takeover talks with the Brazilian owner Natura & Co., who has put The Body Shop up for sale.

Clariant buys Lucas Meyer Cosmetics for 810 million dollars But away from the rumor mill and back to the facts. On Monday morning, Swiss specialty chemicals provider Clariant AG announced that it had agreed with US specialty chemicals provider International Flavors & Fragrances (IFF) on the acquisition of the Canadian company Lucas Meyer Cosmetics.

The purchase price amounts to a total of 810 million USD, without cash and debt. But before I explain to you further details about the deal, I would like to briefly introduce you to the companies involved in the transaction.

The companies in brief Lucas Meyer Cosmetics was founded in 1999 and has its headquarters in Quebec, Canada. The company is a leading provider of high-quality cosmetic ingredients for the cosmetics and body care industry.

Lucas Meyer generated a turnover of around 100 million USD last year with very attractive profitability. Clariant expects to increase the annual turnover of Lucas Meyer Cosmetics to around 180 million USD by 2028.

Due to the low capital assets and outsourced production, Lucas Meyer Cosmetics has a very high cash flow. In addition, Lucas Meyer Cosmetics operates a customer-oriented business model that leads to high brand awareness among customers worldwide, as Clariant announced in its statement.

Lucas Meyer Cosmetics was acquired by US specialty chemicals provider International Flavors & Fragrances (IFF) in 2015. The New York City-based specialty chemicals provider produces and distributes, among other things, cosmetic active ingredients and natural ingredients for use in various cosmetics. In addition, IFF also distributes, among other things, food ingredients, fragrances, enzymes and probiotics.

The globally active company employs around 24,600 employees, who generated a turnover of 12.44 billion USD last year. The operating profit (EBIT) was 1.28 billion USD last year.

The Swiss specialty chemicals company Clariant AG, founded in 1886 and based in Muttenz (Greater Basel), is active in the business areas of Care Chemicals, Catalysis and Natural Resources.

In 2022 Clariant operated 70 production sites in 24 countries. With around 11,000 employees, the Swiss company generated a turnover of 5.4 billion euros and an EBIT of 57.5 million euros in the 2022 financial year.

Clariant wants to expand portfolio and strengthen US presence Through the acquisition of Lucas Meyer Cosmetics, Clariant wants to expand its portfolio as a supplier to the cosmetics industry and its presence in North America, as Clariant CEO Conrad Keijzer emphasizes in a statement on the takeover:

„The intended acquisition of Lucas Meyer Cosmetics is another important step for Clariant’s purpose-driven growth strategy. This step will strengthen our position as a pure specialty chemicals company, our focus on consumer markets and our presence in North America.“

How the stock market reacted The share price of Clariant shares clearly rose yesterday on the Swiss stock exchange. It rose 2.42% during the day and was at 12.68 Swiss francs (CHF) when the closing bell sounded. The investors obviously welcome the acquisition of Lucas Meyer Cosmetics.

The price of IFF shares fell sharply yesterday on the New York Stock Exchange NYSE. It fell by -3.82% to 65.26 USD.

How it should go on The intended transaction is subject to the usual conditions and approval by the authorities and is expected to be completed in the first quarter of 2024, according to the company.