London-based IK Investment Partners has received an exclusive binding offer of about €283 million ($319 million; £205 million) from New York-listed International Flavors & Fragrances for Lucas Meyer Cosmetics, IK announced in a statement.
The sale will deliver IK a 30 percent IRR on its investment, an industry source told Private Equity International.
IK originally acquired Lucas Meyer's parent company Unipex Group in September 2012 with capital from the Industri Kapital 2007 Fund.
Lucas Meyer, headquartered in Quebec, Canada, holds patents and exclusive rights for about 200 cosmetic ingredients with activities in more than 50 countries in North America, Europe and Asia.
“We believe IFF is the preferred partner for Lucas Meyer Cosmetics' future development while preserving the continuity of the world-class, innovative and market-driven cosmetic ingredient expertise,” Lucas Meyer vice president and general manager Antonio Lara said.
IK, founded in 1989, currently manages €7 billion in assets and has managed eight funds to date. It focuses on investments in the Nordics, Austria, Germany and Switzerland, France and Benelux countries.
Willkie Farr & Gallagher were the legal advisers to IK on this transaction, which is expected to close in the third quarter following Unipex's consultation with its French works council.
On 12 June, IFF's share price was $110.17 on the New York Stock Exchange, down $1.28 or 1.15 percent from the previous close, giving the company a market capitalization of $9.01 billion.