The company is headquartered in Sydney, and top of the cosmetics and personal care markets, it also supplies to nutraceutical, food and pharmaceuticals businesses operating in both Australia and New Zealand.
Although neither the terms and conditions, or the price tag for the deal were revealed, IMCD says it expects to capitalize on synergies from its existing operations and will make changes to the existing business structure.
This means that the Capitol Ingredients workforce will be consolidated with staff from the existing IMCD personal care team, while the company also says the business will run as a separate division from its existing IMCD ANZ business that already operates in the region.
Deal targets new business partners in the region
IMCD ANZ managing director Rene den Hertog said that as well as serving to bring in essential new business partners, the acquisition would also serve to reinforce the company’s marketing and sales resources, in turn expanding the business network and supplier possibilities.
The acquisition targets the creation of a much larger and broader product portfolio, together with greater local market coverage in both countries and increased technical support to its customer base.
In the cosmetics category, Capitol ingredients offers a wide range of ingredients, including triglycerides, emulsifiers, preservatives, surfactants, proteins and conditioners, for a wide range of categories, including sun care and natural-based products.
Increasing research and devleopment capabilities
“We are very excited to have the opportunity to join forces with such a reputable international player like IMCD as it will enable us to strengthen our presence in the market through expanding our current network and gaining additional suppliers,” said Fred Johnson, founder of Capitol Ingredients.
Currently Capitol has a laboratory facility in Sydney that IMCD says it will continue to operate, providing technical and formulation expertise, as well as development work and formulation testing.
IMCD acquired the Muskvale business in 2012, and this also gave it a laboratory facility in the region that is targets flavour, essential oils and the fragrance markets.
Following on from the Muskvale acuqisition, the company has bought a number of other smaller sized businesss this year, including South Africa-based specialty chemical player Chemimpo, which extends the company’s research and development capabilities as well as its distribution.