American agribusiness Cargill announced Tuesday that it has entered into a deal to purchase natural emollients and derivatives supplier Floratech. The company said the acquisition will fuel growth in its Beauty business.
“This acquisition will mark an important milestone for Cargill’s effort to expand its Beauty business and will strengthen both companies’ shared vision to unleash beauty sustainability,” Colleen May, president of Cargill Bioindustrial, which includes the Beauty business, said in a statement. “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.”
Floratech, headquartered in Arizona, has produced natural emollients and jojoba derivatives for over four decades. The company’s products are used in beauty and personal care applications.
“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,” said Floratech president Steve Brown in the release. “Cargill’s long-established position as an agricultural powerhouse will not only sustain but accelerate that success.”
The transaction will close following regulatory approvals and completion of closing conditions.