Elementis plc (LSE:ELM), the FTSE 250-listed chemicals group, is buying a UK-based specialist in developing natural products to create viscosity in cosmetic and skincare creams.
Alchemy Ingredients, based in Marlow, Bucks, is to be bought for an enterprise value of approximately £17 million as Elementis looks to strengthen its position in the personal care sector.
Alchemy's key technologies include oil gelling and water gelling agents that offer alternatives to synthetic ingredients.
Elementis said Alchemy’s product range complements its existing portfolio and will be supported by its global sales and distribution network. Alchemy is expected to generate over $6 million in revenue in FY25.
Chief executive Luc van Ravenstein said: "We are delighted to announce the successful completion of this high-quality bolt-on acquisition.
"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."