By Ben Otto
Swiss chemicals company Clariant AG will buy a cosmetic ingredients unit of International Flavors & Fragrances Inc. for $810 million.
New York-based IFF said Monday that it would use proceeds from the deal to reduce debt, consistent with previously announced plans to strengthen its capital structure.
The deal “will allow us to focus on our core businesses, maximizing growth and returns,” said IFF Chief Executive Frank Clyburn. “We are convinced that Clariant is the best owner for the Cosmetic Ingredients business and with an ability to invest, will offer the business and our colleagues a bright future.”
The IFF business unit develops ingredients for the cosmetic and personal care industry, and includes brands Lucas Meyers Cosmetics and IBR. It generated about $100 million in revenue in the past year and operates a mix of six research and development and production sites globally, IFF said.
The deal is expected to close in the first quarter of 2024.
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