THE WHAT? Clariant has announced that it has agreed to acquire Lucas Meyer Cosmetics from IFF for US$810 million. The deal is subject to regulatory approval and is expected to close early next year.

THE DETAILS With circa 10 percent sales growth , outstanding profitability and high cash conversion, Lucas Meyer Cosmetics is accretive to Clariant’s growth, margin and cash flow profile and exceeds its financial target metrics for 2025. The transaction is expected to be mid-single digit percentage accretive to EPS from year one onwards.

THE WHY? Conrad Keijzer, Chief Executive Officer of Clariant, explains, “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.”