IFF to divest Cosmetic Ingredients business unit for $810M

IFF announced that Clariant-a sustainably focused specialty chemical company-has agreed to purchase IFF‘s Cosmetic Ingredients business unit for $810M. Reporting through IFF’s Scent division, IFF’s Cosmetic Ingredients business unit develops, manufactures and markets ingredients for the cosmetic and personal care industry, including active ingredients, functional ingredients and delivery systems, primarily through the Lucas Meyer Cosmetics brand. Cash proceeds from the proposed transaction-net of taxes and expenses-will be used to reduce outstanding debt. IFF’s Cosmetic Ingredients business unit includes the Lucas Meyers Cosmetics and IBR brands and operates six research and development and/or production sites globally. With about 195 employees, IFF’s Cosmetic Ingredients business unit has more than 2,900 customers in over 80 countries and generated approximately $100M in revenue in the last 12 months. IFF and Clariant expect to close the transaction in the first quarter of 2024, subject to applicable works council consultations and customary closing conditions, including regulatory clearances. Morgan Stanley & Co. LLC acted as financial advisor to IFF, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel.