Elementis acquires Alchemy Ingredients to strengthen natural cosmetics range
Key takeaways
- Elementis acquired Alchemy Ingredients for US$22 million on a cash-free, debt-free basis.
- Alchemy’s technologies focus on oil and water gelling, enabling partial or full replacement of synthetic raw materials in cosmetic formulations.
- Alchemy is expected to exceed US$6 million in revenue for FY2025 and has a strong record of organic growth.
Elementis has acquired Alchemy Ingredients for US$22 million on a cash-free, debt-free basis. The deal is said to be part of Elementis’ strategy to accelerate its sustainable, long-term growth and gain a stronger market position in the expanding natural cosmetics sector.
Alchemy Ingredients develops rheology modifier ingredients for the personal care industry, including skin care and cosmetic applications. With its natural and functional ingredients, it partly or fully replaces synthetic raw materials in cosmetic formulations.
“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 skin care market,” says Luc van Ravenstein, CEO of Elementis.
“The business opens exciting opportunities to expand our skin care 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.”
Expanding oil and water gelling tech
Elementis says Alchemy Ingredients is a strong fit for the global specialty chemicals company, as it brings complementary products and technologies to its portfolio.
Alchemy Ingredients holds key technologies, predominantly for oil and water gelling. Elementis will leverage these to further strengthen its expertise in formulation solutions and rheology.
“These [technologies] will help to create new sensory profiles and textures to enhance the Group’s cosmetic and skin care 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,” says Elementis.
Meanwhile, the company highlights Alchemy Ingredients’ “strong track record” of organic growth and is expected to reach revenue above US$6 million for fiscal year 2025.
Last month at In-Cosmetics Asia, Elementis introduced new formulation technologies. It presented its Bentone Ultimate, a natural rheology modifier series, and Naturaluxe MFF, a biodegradable film former for eco-friendly sun care. The launches tap into K-beauty beauty trends, especially amid the rising demand for light textures and eco-friendly materials.
