Cosmetic Design: January 2009
France-based Rhodia has acquired the US McIntyre Group to build on its presence in the personal care and oil surfactant categories as a means of maintaining growth. McIntyre specialises in the global manufacture of specialty surfactants and the acquisition is expected to reinforce Rhodia’s Novecare brand for personal cleansing, as well as extending its hair care offerings.
According to Rhodia CEO Jean-Pierre Clamadieu this will help to provide further growth in areas where the company is already a market leader. “It will reinforce our presence in innovative markets which are largely resistant to economic downturn,” Clamadieu added.
To a lesser extent the deal will also reinforce Rhodia’s presence in the home, institutional and industrial cleaning markets, as well as driving new opportunities for oilfield production and agrochemical applications, targeting fast-growing developing markets such as Latin America and Asia Pacific.
Rhodia Group hopes the McIntyre acquisition will stimulate growth in an increasingly uncertain economic climate. Although the global credit crunch has not affected the personal care industry as much as other sectors, suppliers in particular are feeling the pinch as retail sales fall and finished goods manufacturers put pressure on their suppliers to reduce prices.
McIntyre has production facilities in both the UK and the US, employing over 200 people, and has continued to grow at double digit rates over the past three years, contributing to 2008 sales of an estimated $146mn.
Rhodia says that the acquisition will bring about significant synergies, based mainly around selling opportunities, supply chain and improvements in the logistics process.
These synergies are expected to double the EBITDA of the acquired business within the group by 2011, building on McIntyre’s existing recurring EBITDA margin of 10 percent.
Rhodia has had a busy year, having strengthened its presence in the Asia market, signed a major marketing deal for its conditioning polymers and making major surfactant and pearliser product launches
Rhodia Novecare, with a net sales of €930M is one of the six Group’s Enterprises and provides high-performance products and solutions to a wide range of industries including cosmetics, detergents, agrochemicals and oil, as well as industrial applications. Thanks to a worldwide industrial footprint and global R&D and tech-support network, Rhodia Novecare holds leading positions in the surfactants, phosphorus derivatives, natural polymers, synthetic polymers and monomers technologies, and eco-friendly dibasic-ester solvents. Rhodia Novecare has developed particular expertise valuable to answer and anticipate customer’s needs in protection, surface modification, rheology, active delivery, improvement of formulations and processes, environment and health respect.
McIntyre Group Limited is a privately-held chemical company, which is a leading manufacturer of surfactants, polymers, chemical specialties and cosmetic preservatives for the formulations of personal care, household, industrial and institutional cleaning products, as well as oil field aids. This US-based headquarters company counts about 200 employees and has two manufacturing plants , one in the USA (Illinois) and one in UK, complemented by sales and commercial network in the USA, UK, Singapore and Brazil .