IFF’s Lucas Meyer acquisition gets thumbs up from investment world
The two companies recently confirmed that they are on track to seal a €283m deal that will give IFF a firmer footing in the cosmetics and personal care ingredients arena.
A Zack’s analyst blog, published following recent news confirming that the deal has been firmed up between the two companies, highlights a number of reasons why the deal is likely to be a good move, including synergies and expansion possibilities.
Has IFF made the right move?
The deal is expected to close in the third-quarter of 2015, once all the market approvals are given, and IFF says it intends to fund the transaction with its own financial resources.
“We believe such acquisitions are consistent with International Flavors & Fragrances' expansionary policy,” the Zacks.com blog entry stated.
“The company focuses on investing in acquisitions to gain access to new customers, regions and technologies. A diverse portfolio and product mix, along with new business wins, should help the company deliver solid results in the quarters ahead.”
Lucas Meyer big on innovation
Lucas Meyer has forged a name for itself as one of the most innovative ingredients players in the natural-based actives market – an area with significant growth and the potential for further expansion.
It recently launched an ingredient called SW-7, a self-regenerative stem cell solution to be used as a component in anti-aging formulations. SW-7 promises to encourage keratinocyte.
The ingredient received a runner’s up prize at the recent in-cosmetics awards, and adds to a portfolio of more than 25 ingredients that are specifically focused on the anti-aging market.
IFF aims for further global reach
IFF says that the deal will not only serve to increase its footprint in the cosmetics and personal care arena, but will also help it to expand its global footprint.
The existing Lucas Meyer distribution operation serves clients in eight global regions: North America, South America, Europe, North Africa, South Africa, the Middle East, the Far East, and Oceania.
The company underwent significant expansion in 2013 with the addition of Canada-based Biophamracopae's portfolio of botanical ingredients and the acquisition of the Australia-based natural ingredients provider Southern Cross Botanicals.
