Elementis plc (LON:ELM), a global specialty chemicals company, has announced that it has completed the acquisition of UK based Alchemy Ingredients Limited for an enterprise value of c.$22m1 on a cash-free debt-free basis.
Alchemy develops innovative, high-quality, sustainable rheology modifier ingredients for the personal care industry across a range of cosmetics and skin care applications. Its products are natural functional ingredients that fully or partially replace synthetic raw materials in cosmetic formulations. Alchemy’s key technologies revolve predominantly around oil gelling (with the Sucragel® and Sapogel® families of products) and water gelling (Clearthix® and Sclerothix®).
Alchemy is a strong fit for Elementis. It brings exciting new products and technologies that are complementary to our portfolio, further enhancing our expertise in formulation solutions and rheology, and which are highly synergistic with our hectorite products. These will help to create new sensory profiles and textures to enhance the Group’s cosmetic and skincare product range. Elementis will enable Alchemy to build on its success to date by leveraging its global sales and distribution network alongside its complementary technology and application knowledge.
Alchemy has a track record of strong organic growth, with FY25 revenue expected to reach more than c.$6m, with attractive margins.
The acquisition of Alchemy is consistent with the Group’s Elevate Elementis strategy, which seeks to make disciplined, high-quality bolt-on acquisitions to further strengthen the Group’s core specialty additives capabilities and accelerate sustainable long-term growth.
Luc van Ravenstein, CEO of Elementis, said:
“We are delighted to announce the successful completion of this high quality bolt-on acquisition, which is right in our personal care sweet spot and strengthens our position in the growing natural skincare market. The business opens exciting opportunities to expand our skincare portfolio, where the trend toward natural ingredients and enhanced sensory benefits continues to accelerate. Leveraging our global sales and marketing footprint, we see significant potential to scale the business and deliver value.”
1. Enterprise value £17m, subject to standard completion accounts. Converted at exchange rate of £1=$1.3. The enterprise value includes £1.5m of contingent consideration.
