IFF Weighs Sale of $1 Billion Lucas Meyer Cosmetics Unit
International Flavors & Fragrances Inc. (IFF) is considering the sale of its Lucas Meyer Cosmetics unit, which could fetch more than $1 billion. The move is part of the company’s strategy to focus on its core flavors and fragrances business.
IFF’s History and Core Business
IFF is a leading global creator of flavors and fragrances used in a wide variety of consumer products. The company was founded in 1958 and is headquartered in New York City. It has operations in more than 40 countries and employs over 8,000 people.
IFF’s core business is the development, manufacture, and sale of flavors and fragrances for the food, beverage, personal care, and household products industries. The company also produces specialty ingredients, including natural extracts, active ingredients, and functional ingredients.
Lucas Meyer Cosmetics
Lucas Meyer Cosmetics is a subsidiary of IFF that specializes in the development, manufacture, and sale of active ingredients and functional ingredients for the cosmetics industry. The company was founded in 1991 and is headquartered in France. It has operations in more than 20 countries and employs over 500 people.
Lucas Meyer Cosmetics offers a wide range of products, including active ingredients, functional ingredients, and natural extracts. The company also provides formulation services and technical support to its customers.
IFF’s Strategic Shift
IFF has been shifting its focus away from its specialty ingredients business in recent years. The company has sold off several of its specialty ingredients businesses, including its nutrition and health business in 2018 and its natural ingredients business in 2019.
The sale of Lucas Meyer Cosmetics would be the latest move in IFF’s strategic shift. The company is looking to focus on its core flavors and fragrances business, which has been growing steadily in recent years.
Potential Buyers
IFF has not yet identified any potential buyers for Lucas Meyer Cosmetics. However, the company is expected to attract interest from a number of private equity firms and strategic buyers.
Private equity firms are likely to be attracted to the company’s strong market position and growth potential. Strategic buyers, on the other hand, may be interested in the company’s expertise in the cosmetics industry and its wide range of products.
Outlook
IFF is expected to make a decision on the sale of Lucas Meyer Cosmetics in the coming months. If the sale goes through, it would be the latest move in the company’s strategic shift away from its specialty ingredients business.
The sale of Lucas Meyer Cosmetics could fetch more than $1 billion, which would be a significant boost to IFF’s bottom line. The company is hoping that the sale will help it focus on its core flavors and fragrances business and drive future growth.