International Flavors & Fragrances Inc.’s IFF-Lucas Meyer Cosmetics has invested in a Canadian research and development laboratory.
The group invested in Bio ForeXtra, a Quebec City-based lab that specializes in developing active cosmetic and botanical extracts. The deal is expected to expand IFF-LMC’s access to raw materials for its cosmetics actives business. Terms of the investment were not disclosed.
IFF bought Lucas Meyer Cosmetics, which develops, manufactures and markets ingredients for the cosmetics and personal care industries, in 2015, for roughly $320 million. The company offers proprietary active ingredients, functional ingredients and delivery systems that address macro trends in beauty.
The investment is a continuation of IFF’s Vision 2020 strategy — a plan that includes investing innovation, forming partnerships with customers and broadening the portfolio through acquisitions and collaborations.
“This investment is aligned with our Vision 2020 business strategy pillar of strengthening and expanding our portfolio, said Andreas Fibig, IFF chairman and chief executive officer. “We can create differentiation in the cosmetic actives business by providing [differentiated] benefits to consumers, which is increasingly important in a highly competitive market. We believe the access we will gain to sustainably sourced extracts from the Boreal Forest of Canada will provide us with a competitive edge.”
IFF acquired Lucas Meyer Cosmetics to get into cosmetic ingredients. “This [acquisition] will strengthen our product offering and enable IFF to be one of our customers’ partners of choice in the very attractive skin-care and hair-care segment,” Nicolas Mirzayantz, group president of fragrances at IFF, said at the time.
In another leg of the strategy, IFF teamed with Unilever to create a program that supports the farmers of a common fragrance ingredient — vetiver — in Haiti. The program, Vetiver Together, plans to improve food security, increase yields, diversify income, support women’s empowerment and conserve the environment. “Sustainability is a key enabler of our Vision 2020 business strategy, and this partnership is the embodiment of one of our key sustainability strategies, Sensational People, in which we engage our employees and stakeholders to make a positive difference in the world,” said IFF chairman and chief executive officer of the Vetiver Together initiative.