Clariant: acquires Lucas Meyer Cosmetics

(CercleFinance.com) - On Monday the Swiss specialty chemicals group Clariant announced the acquisition of Lucas Meyer Cosmetics, the cosmetics and care products subsidiary of IFF, for $810m, excluding debt.


Clariant says that it wants to increase Lucas Meyer Cosmetics' sales, a company that was created in 1999, which is based in Quebec, Canada, to $180m by 2028, from $100m today.

However, some analysts consider that the transaction is too expensive, at an EV/Ebitda multiple of 16.3x.

The acquisition, which will strengthen Clariant's presence in the high value-added cosmetic ingredients market, will be accretive to growth, margins and cash flow, the group said.

It is set to be completed in Q1 2024.

Today Clariant also announced Q3 EBITDA that fell 28% to 159m CHF, although this beat the consensus.

Meanwhile, Q3 sales fell 21% y-o-y to 1.03bn CHF, including an 8% decrease in organic terms.

The Basel based group - which says it does not expect any recovery in business by the end of the year - has confirmed its FY EBITDA target of 650m to 700m CHF.

Clariant shares were pretty flat on Monday morning after all these announcements, although have fallen by around 15% YTD.


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