AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR

MUTTENZ, 03 APRIL 2024

Clariant, a sustainability-focused specialty chemical company, today announces that it has completed the acquisition of Lucas Meyer Cosmetics, a leading provider of high-value ingredients for the cosmetics and personal care industry, from IFF for an Enterprise Value (EV) of USD 810 million ( CHF 720 million). Purchase price will be subject to customary net debt and working capital adjustments.

The acquisition of Lucas Meyer Cosmetics is a prime example of how we implement our purpose-led growth strategy and support our goal of accelerating customer- and sustainability-driven innovation," said Conrad Keijzer, Chief Executive Officer of Clariant. "The complementarity in customer portfolio, product portfolio, and regional strongholds and capabilities in R&D and in marketing make the combination of Clariant and Lucas Meyer Cosmetics a leading solutions provider for high value personal care brands."

I see the acquisition of Lucas Meyer Cosmetics as a significant step forward for Care Chemicals. Customers as well as consumers increasingly demand high value natural ingredients," said Christian Vang, President of the Clariant Business Unit Care Chemicals and the Americas region. "I extend a warm welcome to 190 highly qualified professionals as our new colleagues at Clariant. We jointly look forward to exciting growth opportunities and expect to increase annual sales to USD 180 million in 2028 from around USD 100 million currently."

The transaction further transforms Clariant's portfolio toward high-growth, high-margin and highly cash-generative specialty chemicals businesses and consumer end-markets underpinned by accelerating demand for natural and sustainable products. It increases Clariant's exposure to the active and functional cosmetic ingredients market in the Business Unit Care Chemicals.

Clariant will consolidate Lucas Meyer Cosmetics in its Business Unit Care Chemicals as of 2 April 2024. The acquisition was funded through the issuance in March 2024 of a CHF 350 million dual-tranche (CHF 200 million for 3 years at 2.375 % and CHF 150 million for 7 years at 2.75 %) senior unsecured bond and through a multi-currency bridge facility at an interest rate of around 4.4 % per annum, which is intended to be refinanced in 2024, subject to market conditions. Clariant expects no change to its investment-grade credit rating after closing.

About Lucas Meyer Cosmetics

Lucas Meyer Cosmetics, founded in 1999 and headquartered in Québec, Canada, is a leading player in the high value active and functional cosmetic ingredients market. Lucas Meyer Cosmetics' competitive edge stems from its superior marketing and innovation capabilities, including global R&D and regional application centers, which translate into strong financial performance with USD 100 million in revenues ( CHF 90 million) and a highly attractive profitability. The business is also highly cash-generative due to its asset-light model and outsourced production. In addition, Lucas Meyer Cosmetics has a unique customer-centric business model, resulting in strong brand recognition among customers around the world.

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CORPORATE MEDIA RELATIONS INVESTOR RELATIONS

Jochen Dubiel                                                 Andreas Schwarzwälder 
Phone +41 61 469 63 63                                        Phone +41 61 469 63 73 
jochen.dubiel@clariant.com                                    andreas.schwarzwaelder@clariant.com 
Ellese Caruana                                                Thijs Bouwens 
Phone +41 61 469 63 63                                        Phone +41 61 469 63 73 
ellese.caruana@clariant.com                                   thijs.bouwens@clariant.com 

Luca Lavina
Phone +41 61 469 63 63
luca.lavina@clariant.com
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This media release contains certain statements that are neither reported
financial results nor other historical information. This document also
includes forward-looking statements. Because these forward-looking statements
are subject to risks and uncertainties, actual future results may differ
materially from those expressed in or implied by the statements. Many
of these risks and uncertainties relate to factors that are beyond Clariant's
ability to control or estimate precisely, such as future market conditions,
currency fluctuations, the behavior of other market participants, the
actions of governmental regulators and other risk factors such as: the
timing and strength of new product offerings; pricing strategies of
competitors; the company's ability to continue to receive adequate products
from its vendors on acceptable terms, or at all, and to continue to
obtain sufficient financing to meet its liquidity needs; and changes
in the political, social and regulatory framework in which the Company
operates or in economic or technological trends or conditions, including
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http://www.clariant.com www.clariant.com
Clariant is a focused specialty chemical company led by the overarching
purpose of 'Greater chemistry -- between people and planet'. By connecting
customer focus, innovation, and people the company creates solutions
to foster sustainability in different industries. On 31 December 2023,
Clariant totaled a staff number of 10 481 and recorded sales of CHF
4.377 billion in the fiscal year for its continuing businesses. As of
January 2023, the Group conducts its business through the three Business
Units Care Chemicals, Catalysts, and Adsorbents & Additives. Clariant
is based in Switzerland.
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-- Clariant Media Release_Clariant acquires Lucas Meyer Cosmetics
20240403_EN
https://ml-eu.globenewswire.com/Resource/Download/c4dcbac6-c4d3-4029-868f-fca83df6ade9



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(END) Dow Jones Newswires

April 03, 2024 00:00 ET (04:00 GMT)