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As beforehand reported in CosmeticsDesign, Swiss multinational specialty chemical compounds firm has entered into an acquisition settlement with Canadian firm Lucas Meyer Cosmetics, which is at present the enterprise unit of dad or mum firm Worldwide Flavors & Fragrances, Inc. The proposal, which “is topic to customary closing situations, is anticipated to shut within the first quarter of 2024,” is a powerful indicator of anticipated development for each firms within the subsequent enterprise quarter and past, shared Dr. Jochen Dubiel, Head of Company Communications at Clariant.
CosmeticsDesign spoke to Dr. Dubiel to be taught extra in regards to the technique behind the acquisition transaction between Clariant and Lucas Meyer, the plans for Lucas Meyer as soon as the corporate joins Clariant’s portfolio, and projections for future enlargement of the Lucas Meyer enterprise.
Acquisition technique
The proposed Lucas Meyer Cosmetics acquisition is an integral a part of Clariant’s bigger strategic plans for continued development, additional enlargement, and to higher serve producers of cosmetics and private care merchandise. As shared by Dr. Dubiel, Clariant’s “purpose-led development technique is to rework its portfolio in the direction of high-growth, high-margin and extremely money generative specialty chemical compounds companies and client end-markets underpinned by accelerating demand for sustainable merchandise.”
Additional, he added, the transaction will “strengthen Clariant’s place as a real specialty chemical firm pursuant to its purpose-led development technique to extend buyer focus, drive innovation, lead in sustainability and improve folks engagement” by rising its potential to higher meet rising business demand for efficient, purpose-based elements for product formulation.
At present, Clariant affords a variety of beauty and private care product elements that embrace actives, moisturizers, emollients, emulsifiers, movie formers, hair conditioning brokers, preservatives, and delicate surfactants, Dr. Dubiel defined. Nonetheless, by “combining its personal private care elements portfolio with Lucas Meyer Cosmetics,” he stated, it will “allow Clariant to turn out to be a market chief within the excessive worth beauty elements area,” and foster additional business development and innovation.
By combining their respective strengths, “Clariant and Lucas Meyer Cosmetics are an ideal strategic match with complementarity in key dimensions,” he added, which embrace “buyer portfolio, product portfolio, regional strongholds and capabilities in R&D and advertising.” Moreover, he shared, the acquisition affords Clariant the chance to “additional improve its portfolio weighting to essentially the most enticing segments of client end-markets to approx. 45% with accelerating demand for sustainable merchandise.”
Plans instantly following a profitable acquisition
As Lucas Meyer Cosmetics already “has a powerful, acknowledged model and has been managed as a comparatively unbiased enterprise inside the IFF portfolio,” stated Dr. Dubiel, the corporate brings a firmly established and “distinctive set of capabilities and powerful monetary observe file” to the desk. Subsequently, he defined, upon profitable completion of the acquisition, Clariant plans to “retain the traits which make Lucas Meyer Cosmetics the enticing, high-value enterprise it’s, and so it will likely be managed individually inside Care Chemical substances.”
Additional, he shared, whereas it’s too early to invest or “touch upon the small print of integration following the proposed acquisition,” together with how Lucas Meyer’s R&D capabilities will likely be built-in into the Clariant enterprise operations, he believes that “nearly all of the advantages of the Lucas Meyer Cosmetics acquisition relate to rising the enterprise by means of cross-selling given the complementarity of the client and product portfolios, leveraging advertising and R&D experience plus regional enlargement.”
Future enlargement
Shifting ahead, it’s Clariant’s ambition to develop Lucas Meyer Cosmetics annual gross sales from roughly $100 million to roughly $180 million within the subsequent 5 years, stated Dr. Dubiel. By combining the businesses two product portfolios, Clariant plans to fulfill this monetary aim by “unleashing speedy cross-selling alternatives,” he stated. For instance, he illustrated, “Lucas Meyer Cosmetics as a pacesetter in top quality peptides and botanical primarily based energetic elements coming from completely different biomes of the world equivalent to Australia, whereas our Care Chemical substances enterprise has a quickly rising natural-focused actives and extracts portfolio, with extra primary elements for private care.”
Finally, he concluded, the proposed acquisition will ideally have a positive consequence for each events within the close to future. “With the proposed acquisition of Lucas Meyer Cosmetics,” he defined, “Clariant will add a extremely modern enterprise with impeccable sustainability credentials to its portfolio – consistent with its strategic aim to speed up buyer and sustainability pushed innovation.”
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