IFF weighs sale of US$1 billion Lucas Meyer cosmetics unit

INTERNATIONAL Flavors & Fragrances (IFF) is weighing a sale of a unit making ingredients for the cosmetics and personal care industry, people with knowledge of the matter said.

IFF is working with an adviser as it explores options for Lucas Meyer Cosmetics, which could be valued at about US$1 billion, according to the people, who asked not to be identified discussing confidential information.

The unit may attract interest from rivals including UK specialty chemicals group Croda International and European fragrance companies Givaudan of Switzerland and Germany’s Symrise, they said.

Shares in IFF rose as much as 1.4 per cent in early trading on Friday. The stock was up 1 per cent at 9.42 am in New York, giving the company a market value of about US$21.7 billion.

Deliberations are ongoing and IFF could opt to keep the business it acquired in 2015, the people said. Representatives for Croda, Givaudan and IFF declined to comment, while a spokesperson for Symrise didn’t immediately provide comment.

IFF cut its full-year outlook earlier this month, with its revised forecast coming in below analyst expectations. The company said it would continue to drive “portfolio optimisation”. BLOOMBERG