Cargill to acquire Floratech, leading specialty beauty ingredient supplier
Combining Cargill’s global supply chain and commercial capabilities with Floratech’s research capabilities and specialty ingredient portfolio will provide the beauty industry’s broadest portfolio of nature-derived ingredients
(MINNEAPOLIS) October 20, 2020 – In response to growing consumer preferences for nature-derived and sustainably sourced ingredients, Cargill has entered into an agreement to acquire Floratech, a leading global provider of innovative natural emollients and derivatives for beauty and personal care applications. Pending regulatory approval and closing conditions, the acquisition demonstrates Cargill’s ambition to grow its Beauty business and would offer beauty and skincare customers around the world access to the broadest portfolio of sustainable, nature-derived ingredients.
“This acquisition will mark an important milestone in Cargill’s effort to expand its Beauty business and will strengthen both companies’ shared vision to unleash beauty sustainably,” said Colleen May, president of Cargill Bioindustrial, which includes the Beauty business. “This partnership will accelerate our combined growth, maximize value for customers by building industry-leading capabilities focused on nature-derived solutions, and help those customers shift their portfolio from synthetic chemicals to more sustainable ingredients.”
Based in Arizona, Floratech brings 45 years of market-leading expertise in natural emollients and jojoba derivatives. Their product development experience in specialty beauty ingredients aligns closely with Cargill’s growth strategy and advances the capabilities of its global Beauty business.
“We are thrilled to join the Cargill team,” said Steve Brown, president of Floratech. “This partnership will bring even more sustainable value to cosmetics and personal care formulations around the world. Floratech has a long history of developing plant-based sustainable ingredients at levels of quality and functionality superior to the synthetic products they replace. Cargill’s long-established position as an agricultural powerhouse will not only sustain but accelerate that success.”
Cargill has been producing ingredients for the beauty industry for more than 40 years, building a world-class global Beauty organization focused on delivering a broad portfolio of nature-derived ingredients. The addition of Floratech and its industry-leading capabilities in specialty emollients and derivatives will fit squarely within its portfolio.
“This is an exciting step for our Beauty business,” said Bente Korsgaard Andersen, managing director for Cargill’s Beauty business. “Floratech is a key player in the beauty industry, and their expertise in specialty beauty ingredients is particularly impressive. Our combined capabilities will be essential to delivering new and innovative beauty solutions to customers that want nature-derived, sustainable ingredients.”
Rothschild & Co is serving as financial advisor and Eversheds Sutherland as legal counsel to Floratech on this transaction.
Kelly Sheehan, [email protected]
Cargill’s 155,000 employees across 70 countries work relentlessly to achieve our purpose of nourishing the world in a safe, responsible and sustainable way. Every day, we connect farmers with markets, customers with ingredients, and people and animals with the food they need to thrive. We combine 155 years of experience with new technologies and insights to serve as a trusted partner for food, agriculture, financial and industrial customers in more than 125 countries. Side-by-side, we are building a stronger, sustainable future for agriculture.
About Cargill Beauty
Cargill Beauty, Cargill’s personal care platform, addresses ingredient challenges for the cosmetic market by unleashing nature sustainably. Cargill Beauty offers a diverse portfolio of nature-derived ingredients, an integrated and responsible supply chain, state of the art research and application services and endless possibilities for the future. Cargill Beauty’s portfolio is composed of texturizers, emollients, emulsifiers, sensory enhancers and active ingredients to develop nature-based products for skin care, hair care, color care and oral care.
Floratech provides innovative botanical ingredients to formulators of stable, functional and quality cosmetic and personal care products worldwide. Over the past 45 years Floratech has grown into a modern botanical derivative research and manufacturing center. Its Chandler, Arizona headquarters houses a state-of-the-art manufacturing facility, quality and R&D laboratory, distribution warehouse and consumer testing laboratory.