Clariant agrees to acquire Lucas Meyer Cosmetics, a leading provider of high value ingredients for the cosmetics and personal care industry
30 Octubre 2023 - 11:00PM
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 Jochen DubielPhone
+41 61 469 63 63jochen.dubiel@clariant.com Anne
SchäferPhone +41 61 469 63
63anne.schaefer@clariant.com Ellese
CaruanaPhone +41 61 469 63 63ellese.caruana@clariant.com
|
INVESTOR
RELATIONS Andreas Schwarzwälder
Phone +41 61 469 63 73andreas.schwarzwaelder@clariant.com
Thijs BouwensPhone +41 61 469 63
73thijs.bouwens@clariant.com |
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. www.clariant.com
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 2015-2023E2 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
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