PARIS ­— Swiss chemicals company Clariant has agreed to accumulate Lucas Meyer Cosmetics, maker of high-value lively and functional cosmetics ingredients, from International Flavors and Fragrances for $810 million.

The deal is reminiscent of a 16.3-times multiple, based on Lucas Meyer Cosmetics’ earnings before interest, taxes, depreciation and amortization reported in August 2023. The transaction is anticipated to shut in the primary quarter of 2024.

“The proposed acquisition of Lucas Meyer Cosmetics marks one other major step forward for Clariant’s purpose-led growth strategy. It can strengthen our position as a real specialty chemical company, our exposure toward consumer markets and our footprint in North America, while supporting our goal to speed up customer- and sustainability-driven innovation,” Conrad Keijzer, chief executive officer of Clariant, said in a press release.

“As well as, Lucas Meyer Cosmetics brings a highly experienced leadership team with a superb track record,” he continued. “By combining our personal-care ingredients portfolio with Lucas Meyer Cosmetics, Clariant will turn into a pacesetter within the high-value cosmetic ingredients space, one of the attractive, profitable and fastest-growing specialty chemicals markets. With this step, we’ll construct on our successful track record of pursuing and integrating bolt-on acquisitions to enable value creation and profitable growth.”

IFF said in a separate statement that money proceeds from the proposed transaction, net of taxes and expenses, is for use to scale back outstanding debt.

“Consistent with our announcement during our second-quarter earnings, we’re executing our portfolio optimization technique to strengthen our capital structure,” IFF CEO Frank Clyburn said within the statement. “Aligned with our best-owner mindset, the proposed sale of our cosmetic ingredients business to Clariant will allow us to give attention to our core businesses, maximizing growth and returns.

“We’re convinced that Clariant is the perfect owner for the cosmetic ingredients business and with a capability to speculate, will offer the business and our colleagues a vivid future,” he added.

IFF acquired Lucas Meyer Cosmetics in 2015 for about 283 million euros.

IFF’s cosmetic ingredient business unit includes Lucas Meyers Cosmetics, founded in 1999 and based in Quebec, Canada, and IBR brands. It operates six research development and/or production sites worldwide and has roughly 195 employees. Over the past 12 months, the unit has had greater than 2,900 customers in greater than 80 countries.

“Lucas Meyer Cosmetics represents a big, exciting growth opportunity for care chemicals. It is an ideal fit with our business, given the complementarity of our customers and products,” said Christian Vang, president of the Clariant business unit care chemicals and the Americas region. “Combining our respective strengths, including the R&D and innovation capabilities of Lucas Meyer Cosmetics, backed by a robust brand, will enable us to deliver a robust increase in annual sales to $180 million in 2028 from around $100 million currently.”

Clariant said Lucas Meyer Cosmetics’ business is very cash-generative, resulting from its asset-light model and outsourced production.

“As well as, Lucas Meyer Cosmetics has a novel customer-centric business model, leading to strong brand recognition amongst customers around the globe,” Clariant said.

The group noted that each it and Lucas Meyer Cosmetics have complementarity of their customer and product portfolio, geographic reach, and marketing and R&D capabilities.

The transaction ought to be accretive to Clariant’s earnings per share by midsingle-digits from the primary yr onward.