Swiss chemicals company Clariant AG has announced its plans to acquire the cosmetic ingredients unit of International Flavors & Fragrances Inc. (IFF) for a total of $810 million. This strategic move by Clariant is aimed at expanding its presence in the cosmetic and personal care industry.
As part of the transaction, New York-based IFF intends to use the proceeds from the deal to reduce debt, in line with its previously communicated strategy to strengthen its capital structure. This decision underscores IFF's commitment to focus on its core businesses and maximize growth and returns.
"The sale of our Cosmetic Ingredients business to Clariant will enable us to concentrate on our key areas of expertise while ensuring a bright future for this business under new ownership," stated Frank Clyburn, Chief Executive Officer of IFF. He further added, "Clariant's ability to invest and drive innovation positions them as the ideal owner for this unit, providing growth opportunities for both the business and our dedicated colleagues."
The cosmetic ingredients unit of IFF comprises renowned brands like Lucas Meyers Cosmetics and IBR. In the past year, this sector generated approximately $100 million in revenue. With six research and development and production sites worldwide, the unit is at the forefront of developing high-quality ingredients for the cosmetic and personal care industry.
The deal between Clariant and IFF is expected to be finalized in the first quarter of 2024. This acquisition reflects Clariant's commitment to expanding its portfolio and strengthening its market position in the specialty chemicals sector.