Clariant agrees to acquire Lucas Meyer Cosmetics, a leading provider of high value ingredients for the cosmetics and personal care industry
AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR
- Clariant agrees to acquire Lucas Meyer Cosmetics for a total consideration of USD 810 million (~ CHF 720 million)
- Fully aligned with Clariant’s purpose-led growth strategy,strengthens position as a true specialty chemical company
- Will expand Clariant’s reach into high value cosmetic ingredients space, based on customer-driven innovation and natural solutions
- Strong strategic fit with complementary customer and product portfolios, geographic footprint, and research capabilities
- Ambition to grow Lucas Meyer Cosmetics annual sales from ~ USD 100 million to ~ USD 180 million by 2028
- Lucas Meyer Cosmetics financial profile accretive to growth, margins, and cash flow; significantly exceeding Clariant’s 2025 target metrics
- Closing expected in the first quarter of 2024
MUTTENZ, 30 OCTOBER 2023
Clariant, a sustainability-focused specialty chemical company, today announced that it 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) for a total cash consideration of USD 810 million (~ CHF 720 million) on a debt-free, cash-free basis, equivalent to an EV/ reported EBITDA multiple (LTM August 2023) of 16.3x. The proposed transaction is subject to regulatory approvals and customary closing conditions and is expected to close in the first quarter of 2024.
“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 USD 180 million in 2028 from around USD 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.
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, which translate into strong financial performance with ~ USD 100 million of revenues (~ CHF 90 million) and highly attractive profitability. The business is also highly cash generative due to its asset-light model and outsourced production. In addition, Lucas Meyer Cosmetics has a unique customer-centric business model, resulting in strong brand recognition among customers around the world.
Strong strategic and financial rationale
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 of Clariant and Lucas Meyer Cosmetics a uniquely positioned solutions provider for high value 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 underpinned by accelerating demand for natural and sustainable products. It will increase Clariant’s exposure to the active and functional cosmetic ingredients market and strengthen its North America presence in the Care Chemicals business unit.
The transaction will create considerable value for Clariant’s shareholders. With ~ 10 % sales growth1, outstanding profitability and high cash conversion, Lucas Meyer Cosmetics is accretive to Clariant’s growth, margin and cash flow profile and exceeds Clariant’s financial target metrics for 2025. The transaction is expected to be mid-single digit percentage accretive to EPS2 from year one onwards. Given the strong strategic fit and high complementarity of the businesses, Clariant’s ambition is to grow Lucas Meyer Cosmetics’ annual sales from ~ USD 100 million to ~ USD 180 million by 2028.
Financing and expected timetable
The funding for the acquisition has been secured by a fully committed bridge facility which is intended to be refinanced soon after completion. On completion, Clariant’s net leverage is expected to moderately increase to ~ 2.8x times EBITDA including pension and lease liabilities, preserving the Group’s prudent capital structure and balance sheet strength. Clariant expects no change to its investment grade credit rating.
The acquisition is expected to close in the first quarter of 2024.
Clariant third quarter 2023 reporting – Conference Call
Clariant also published its third quarter / nine months figures 2023 today. The company will host a conference call for analysts and investors covering the proposed Lucas Meyer Cosmetics acquisition as well as the third quarter / nine months figures 2023 at 15.00 CET (14.00 GMT, 10.00am EST).
To register for the call please click here.
To follow the real-time webcast please click here.
|CORPORATE MEDIA RELATIONS|
Phone +41 61 469 63 63
Phone +41 61 469 63 63
Phone +41 61 469 63 63
Phone +41 61 469 63 73
Phone +41 61 469 63 73
| Follow us on X, Facebook, LinkedIn, Instagram.|
This media release contains certain statements that are neither reported financial results nor other historical information. This document also includes forward-looking statements. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Clariant’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors such as: the timing and strength of new product offerings; pricing strategies of competitors; the Company’s ability to continue to receive adequate products from its vendors on acceptable terms, or at all, and to continue to obtain sufficient financing to meet its liquidity needs; and changes in the political, social and regulatory framework in which the Company operates or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. Clariant does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials.
Clariant is a focused specialty chemical company led by the overarching purpose of ‘Greater chemistry – between people and planet’. By connecting customer focus, innovation, and people the company creates solutions to foster sustainability in different industries. On 31 December 2022, Clariant totaled a staff number of 11 148 and recorded sales of CHF 5.198 billion in the fiscal year for its continuing businesses. As of January 2023, the Group conducts its business through the three newly formed Business Units Care Chemicals, Catalysts, and Adsorbents & Additives. Clariant is based in Switzerland.
1 CAGR 2015-2023E
2 On an adjusted basis including full run-rate synergies and excluding non-recurring, transaction-related costs
- 20231030_CLARIANT ANALYST PRESENTATION_LUCAS MEYER COSMETICS_Q3_9M 2023
- Clariant Media Release_Clariant agrees to aquire Lucas Meyer Cosmetics 20231030_ DE
- Clariant Media Release_Clariant agrees to aquire Lucas Meyer Cosmetics 20231030_EN
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.
About GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York
GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire by notified
Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire by notified
Hexagon Purus receives order to deliver hydrogen distribution systems to a leading player within the green hydrogen ecosystem3.12.2023 21:57:00 CET | Press release
(Oslo, 3 December 2023) Hexagon Purus, a world leading manufacturer of zero emission mobility and infrastructure solutions, has received purchase orders for the delivery of hydrogen distribution systems to a leading player within the green hydrogen ecosystem, worth approximately EUR 9.6 million. Hexagon Purus’ hydrogen distribution systems, including its type 4 hydrogen cylinders, will be used to deliver green hydrogen to industrial applications in Central Europe. Driving Energy Transformation “There is a growing need to move hydrogen around, and our distribution systems are significantly more cost-effective than traditional metal tube transportation solutions. We expect demand for our systems to gain further momentum as green hydrogen increasingly becomes part of the hydrogen mix”, says Michael Kleschinski, EVP Hydrogen Infrastructure & Mobility at Hexagon Purus. About the market The industrial and mobility sectors account for close to 50% of annual carbon emissions globally, and hydr
Exhibition World Bahrain Secures "World’s Leading New Exhibition and Convention Centre 2023" Award at World Travel Awards 20233.12.2023 11:00:00 CET | Press release
DUBAI, United Arab Emirates, Dec. 03, 2023 (GLOBE NEWSWIRE) -- Exhibition World Bahrain (EWB), the Middle East’s newest and largest exhibition and convention centre, is proud to announce securing the “World’s Leading New Exhibition and Convention Centre 2023” at the World Travel Awards 2023. The award accolade was presented to Dr. Nasser Qaedi, the CEO of Bahrain Tourism and Exhibitions Authority (BTEA), during the World Travel Awards 2023 Grand Final Gala Ceremony, which took place at Burj Al Arab in Dubai, UAE, on December 1, 2023, in the presence of HE Philip Joseph Pierre, the prime minister of Saint Lucia, tourism ministers, and travel elites across the globe. Exhibition World Bahrain captured the highest number of votes, clinching the internationally recognised award from Bharat Mandapam, India, and Tākina Wellington Convention and Exhibition centre, New Zealand. With this unrivalled win, the Kingdom of Bahrain has further cemented its reputation as the leading global hub for the
Merus Presents Interim Data on MCLA-129 at ESMO Asia Congress 20233.12.2023 02:40:00 CET | Press release
MCLA-129 in combination with chemotherapy in 2L+ EGFRm NSCLC planned to initiate 1Q24 UTRECHT, The Netherlands and CAMBRIDGE, Mass., Dec. 02, 2023 (GLOBE NEWSWIRE) -- Merus N.V. (Nasdaq: MRUS) (“Merus”, “the Company”, “we”, or “our”), a clinical-stage oncology company developing innovative, full-length multispecific antibodies (Biclonics® and Triclonics®), today announced updated interim clinical data on MCLA-129 from ongoing expansion cohorts in non-small cell lung cancer (NSCLC) and in previously treated head and neck squamous cell carcinoma (HNSCC) were presented at the European Society for Medical Oncology (ESMO) Asia Congress 2023. “MCLA-129 is a very active drug in EGFRm NSCLC and we’re planning a focused investment to evaluate MCLA-129 in combination with chemotherapy, which we expect to start early in 2024,” said Bill Lundberg M.D., President, Chief Executive Officer of Merus. “We are in a fortunate position to have a strong balance sheet. We also recognize the importance of be
CASGEVY Gets Bahrain approval for treatment, marking it second country in the world2.12.2023 18:59:21 CET | Press release
MANAMA, Bahrain, Dec. 02, 2023 (GLOBE NEWSWIRE) -- Bahrain has become the second country in the world and the first in the Middle East to approve the use of CASGEVY (exagamglogene autotemcel) for the treatment of patients with sickle cell disease and transfusion-dependent beta-thalassemia. The treatment was developed by Vertex Pharmaceuticals and CRISPR Therapeutics, after conducting a series of successful clinical trials in the UK, US, France, Italy, and Germany, among others. Following the UK MHRA’s authorisation to use CASGEVY, Bahrain is the second country in the world and the first in the region to approve this treatment. This extraordinary development opens up new possibilities for medical advancements and reinforces Bahrain's commitment to pioneering healthcare solutions, offering a better quality of life for patients with these blood disorders. CRISPR (Clustered Regularly Interspaced Short Palindromic Repeats) is a revolutionary gene-editing technique that holds immense potenti
Scatec at COP28: Accelerating renewable energy transition from Egypt to South Africa2.12.2023 14:01:22 CET | Press release
Dubai, 2 December 2023: This week, Scatec ASA, a leading renewable energy company, is actively engaging in the UN Climate Change Conference in Dubai (COP28). Our focus is to underscore renewable energy as an unequivocal solution to climate change and emphasise the critical need for increased green energy investments in emerging markets. COP28 serves as a pivotal platform for global stakeholders to reinforce commitments aimed at averting catastrophic consequences of climate change. Scatec aligns with climate experts in stressing the urgency of the situation and the imperative to continue advancing towards the objectives outlined in the Paris Agreement. There's no time to waste, and collective progress is crucial for safeguarding our planet's future. “We are at COP28 to highlight the key role renewable energy must play in our energy future, "At COP28, our focus is on underscoring the crucial role renewable energy must assume in shaping our energy future, particularly in emerging markets,