The SRLH Holdings business centers on active ingredients, particularly aluminium- and zirconium-based actives for formulating antiperspirant. Elementis, until now, has been predominantly a rheological additives company. In combination, the two businesses will serve more clients in more geographies with more products.
In a recent press release, Elementis summarizes why the acquisition of SRLH or SummitReheis (as the company is also known) is the right business move: “Elementis’ existing personal care business is part of its Specialty Products division and supplies hectorite and Rheoluxe rheology modifiers that enhance the effectiveness of SummitReheis’ products,” explains the company.
Speaking practically and financially then, “SummitReheis will be merged with Elementis’ existing personal care activities, creating a business with approximately US$200 million of annual sales.”
Complementary strategy
Company executives believe that the two business, like their respective ingredients, will work well together in formulation.
“At our recent Capital Markets Day presentation, we highlighted the growth prospects in personal care as a key opportunity for Elementis, driven by long term positive demographic trends and an increasingly sophisticated consumer,” PaulWaterman, CEO of Elementis, tells the press.
Waterman goes on to explain that, “our leading position with proprietary hectorite and Rheoluxe rheology modifiers will be augmented by SummitReheis’ complementary position in specialty additives for anti-perspirants, pharmaceuticals and dental products.”
Category strategy
Elementis puts the antiperspirant market at $13bn and is banking on category growth from emerging markets and a growing demand in other regions for more premium or higher efficacy products.
Elementis “is well positioned to capitalise on this acquisition through the enhanced geographic footprint and strong customer relationships that it brings,” believes Waterman. “Together with our existing business, the acquisition of SummitReheis is transformative for our personal care business, creating a substantial, high return platform that will help accelerate our Reignite Growth strategy.”