Arkema increases global footprint in cosmetic ingredients

The company said that the move to buy up the business supports its ambitions to stretch its global reach into the South America market specifically, as well as increasing its presence in value added products.

Arkema proposes to acquire the Araçariguama production site on the outskirts of Saõ Paulo, through its Coatex subsidiary, which will form a new Brazilian subsidiary, that, combined with existing revenues in Brazil, should bring the business in an estimated turnover of $20m (€24m) a year. 

Acquisition is subject to regulatory laws​

Arkema has not revealed how much it is paying for the facility, but said that the deal should be closed by the second half of 2012, subject to regulatory and competition laws.

The combined expertise of the new businesses will be focused on the manufacturing of resins and specialty emulsions that will serve the cosmetics and personal care industry, together with a number of other areas, including mineral processing, pater and water treatment.

According to Arkema, the Araçariguama production site was built in 2007, but further investment in the facility will see it developed to produce a full range of the company’s rheology additives and waterborne emulsions, through the incorporation of its expertise and technologies.

Growing the business in Latin America​

“The Araçariguama site is ideally placed to fulfil the expectations of both our existing and future customers. This is a first major step that will allow Arkema and its subsidiary Coatex to draw on the strong growth of Brazil and Latin America without delay​,” said Alain Mari, Chairman of Coatex.

In 2011 the Coatex division reported a turnover €180m, against a total Arkema group turnover of €5.9bn. The division offers a range of products for the cosmetics industry and specialises in polymers.

Most recently the company unveiled a new study into the behaviour of its Orgasol ultrafine polyamide powders in formulation at the in-cosmetics event in Barcelona, while also presenting Summer Breeze, a new collection of formulas for summer containing Orgasol Caresse.