In the latest beauty manufacturing deal, Elkem ASA is buying Basel Chemie for $26.9 million.
Basel, which has facilities in Gunsan and ilieoul in Korea, specializes in silicones that are used in skin-care and makeup products, as well as water repellents for the construction industry. The business did $7.7 million in sales for 2018.
In cosmetics, silicones are generally used to make sure products spread across skin, don’t transfer onto clothes, and sometimes, can help reduce the appearance of lines upon product application.
Elkem, based in Olso, Norway, supplies silicones for the cosmetics space, as well as paper, food, energy, transportation and other industries. The company said the deal helps it expand to Asia, and adds expertise into the business. Elkem plans to expand Basel through its own sales and distribution network.
The deal is expected to close in September.
Mana, the New York-based manufacturer, is exploring sale options, the company’s general manager confirmed to WWD. The group is said to have hired Guggenheim for the process.
Earlier this year, Bain Capital bought a majority stake in Maesa, the beauty manufacturer behind many retailer private-label beauty brands. Maesa also incubates Kristin Ess and Flower Beauty. Cornell Capital and HarbourVest Partners also backed KDC, which has made a series of acquisitions to build up its manufacturing operations.
For more from WWD.com, see: