International Flavors & Fragrances Inc. (NYSE: IFF) is making a move into cosmetic ingredients with a 283 million (U.S. $ 318.7 million) deal for Lucas Meyer Cosmetics.
Lucas Meyer, headquartered in Quebec City, develops, manufactures and markets ingredients for the personal care industry.
The deal allows New York-based International Flavors to expand into skin and hair care ingredients. The company makes flavors and fragrances used in consumer products, including detergents, household goods, beverages and food.
Morgan Stanley & Co. is International Flavors' financial adviser, and Cleary Gottlieb Steen & Hamilton LLP is providing legal advice.
The deal underscores interest in ingredients companies as targets across the board. For more, see Ingredients Companies Add Up to Tasty Targets.
Similar companies have piqued buyer interest. In March, SK Capital Partners picked up a majority stake in wine and beer ingredients company AEB Group. In December, Archer Daniels Midland Co. bought food ingredients business Specialty Commodities Inc. for $191 million.