IMCD Buys Canada’s L.V. Lomas
In its second North American acquisition this year, IMCD is to acquire Canadian and US specialty chemicals and ingredients distributor, L.V. Lomas. Financial terms were not disclosed but IMCD said it would fund the acquisition from available cash and existing bank facilities.
Lomas represents IMCD’s first step into Canada and also boosts the Dutch group’s position in the US, following its recent purchase of Houston, Texas-headquartered Bossco Industries.
Commenting on the deal, IMCD’s CEO, Piet van der Slikke, said: “This is an important step in the further development of IMCD's North America region as it not only expands our geographical presence into Canada in all core markets but also further strengthens our US organization and coverage.”
Rand Lomas, chairman of L.V. Lomas added: “Together we will become a market leader in North America for the sales, marketing and distribution of specialty chemicals and food and pharmaceutical ingredients.”
Headquartered in Toronto, L.V. Lomas has offices in Montreal and Vancouver as well as operations at six locations in Canada and the US. The business generated revenues of C$383 million in 2016 and employs approximately 280 people.
The transaction, which is subject to the usual closing and regulatory conditions, is expected to close at the end of August.
In separate news, IMCD has signed an exclusive agreement with Givaudan to distribute the Swiss company’s flavors range in food and nutrition markets in Germany, France, Italy, Spain, Benelux, the UK and Nordic countries.
“This relationship will allow us to reach a whole new customer base of small- to medium-sized enterprises where we can add value and help customers create inspiring products which delight consumers,” said Kevin Robinson, Givaudan’s commercial head of Western Europe.