10.30.23
Clariant—a sustainably focused specialty chemical company—has agreed to purchase IFF’s Cosmetic Ingredients business unit for $810 million.
Reporting through IFF’s Scent division, IFF’s Cosmetic Ingredients business unit develops, manufactures and markets innovative ingredients for the cosmetic and personal care industry, including active ingredients, functional ingredients and delivery systems, primarily through the Lucas Meyer Cosmetics brand. Cash proceeds from the proposed transaction—net of taxes and expenses—will be used to reduce outstanding debt.
“Consistent with our announcement during our second-quarter earnings, we are executing our portfolio optimization strategy to strengthen our capital structure,” said IFF CEO Frank Clyburn. “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. We appreciate the many contributions of our Cosmetic Ingredients colleagues who have demonstrated their commitment to service, quality and innovation.”
“We are convinced that Clariant is the best owner for the Cosmetic Ingredients business and with an ability to invest, will offer the business and our colleagues a bright future,” he added.
IFF’s Cosmetic Ingredients business unit includes the Lucas Meyers Cosmetics and IBR brands and operates six research and development and/or production sites globally. With about 195 employees, IFF’s Cosmetic Ingredients business unit has more than 2,900 customers in over 80 countries and generated approximately $100 million in revenue in the last 12 months.
IFF and Clariant expect to close the transaction in the first quarter of 2024, subject to applicable works council consultations and customary closing conditions, including regulatory clearances. Morgan Stanley & Co. LLC acted as financial advisor to IFF, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel.
Reporting through IFF’s Scent division, IFF’s Cosmetic Ingredients business unit develops, manufactures and markets innovative ingredients for the cosmetic and personal care industry, including active ingredients, functional ingredients and delivery systems, primarily through the Lucas Meyer Cosmetics brand. Cash proceeds from the proposed transaction—net of taxes and expenses—will be used to reduce outstanding debt.
“Consistent with our announcement during our second-quarter earnings, we are executing our portfolio optimization strategy to strengthen our capital structure,” said IFF CEO Frank Clyburn. “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. We appreciate the many contributions of our Cosmetic Ingredients colleagues who have demonstrated their commitment to service, quality and innovation.”
“We are convinced that Clariant is the best owner for the Cosmetic Ingredients business and with an ability to invest, will offer the business and our colleagues a bright future,” he added.
IFF’s Cosmetic Ingredients business unit includes the Lucas Meyers Cosmetics and IBR brands and operates six research and development and/or production sites globally. With about 195 employees, IFF’s Cosmetic Ingredients business unit has more than 2,900 customers in over 80 countries and generated approximately $100 million in revenue in the last 12 months.
IFF and Clariant expect to close the transaction in the first quarter of 2024, subject to applicable works council consultations and customary closing conditions, including regulatory clearances. Morgan Stanley & Co. LLC acted as financial advisor to IFF, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel.
