(CercleFinance.com) – The Swiss specialty chemicals group Clariant announced on Monday the acquisition of Lucas Meyer Cosmetics, the cosmetics and care products subsidiary of IFF, for a value of $810 million, excluding debt.
In a press release, Clariant explains that it wants to increase the turnover of Lucas Meyer Cosmetics, a company created in 1999 and based in Quebec (Canada), to 180 million dollars by 2028, compared to 100 million today.
Some analysts nevertheless consider the transaction too expensive, with an Enterprise Value/Ebitda multiple of 16.3x.
‘This high price can be explained by an operating margin (Ebitda) which reaches almost 40% and the prospect of average annual growth of 12% for the next five years’, react the Stifel teams.
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 expected to be finalized during the first quarter of fiscal 2024.
Clariant also announced this Monday an operating profit (Ebitda) down 28% to 159 million Swiss francs for the third quarter, above market expectations.
Its quarterly turnover fell by 21% year-on-year to 1.03 billion francs, including an 8% decrease in organic data.
For 2023, the Basel group – which says it does not expect any recovery in activity between now and the end of the year – has confirmed its objective of an annual EBITDA of between 650 and 700 million Swiss francs.
On the Zurich Stock Exchange, Clariant shares were stable on Monday morning after all these announcements, still showing a decline of around 15% since the start of the year.
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