The deal allows trading company and chemicals specialist Sumitomo to tap into Presperse’s capabilities in the cosmetics field, and in turn opens up Presperse’s business to Sumitomo’s global operations in Central and Eastern Europe, Latin America, China, Eastern Europe and Japan.
New Jersey-based Presperse says the acquisition will leave its leadership largely intact, with Greg Torchiana remaining as president and CEO, while former owners Jeanette Black and Stuart Axelrod will assume the roles of chairman emeritus and senior executive advisor, respectively.
Presperse eyes bigger market opportunities
Presperse is a leading player in a number of key niche ingredient areas, including specialty hydrocarbons, spherical powders, marine active ingredients, physical sunscreens and botanical actives.
However, according to the two companies, the acquisition will now facilitate Presperse’s move into new technologies and product lines for the skin care and hair care market by tapping into a number of key synergies with Sumitomo, including the Japanese company’s strength in bio-venture and pharmaceuticals.
On top of this, Presperse will also be able to tap into Sumitmo’s highly developed global distribution network, with a particular emphasis on new and developing markets, particularly the BRIC regions.
Expanding product offerings and global reach
Ultimately the acquisition will see the two companies working towards expanding Presperse’s product offerings in the cosmetics ingredients market, as well as significantly expanding the products global availability.
Explaining the benefits of the synergies, Torchiana said: “With the enhanced quality of our research and development laboratory and IP strategy, Presperse will be able to offer advanced active ingredient technology to the cosmetics market through collaboration with the Life Science Division at Sumitomo’s Tokyo head office.”
Sumitomo has a diverse core business that includes transport and construction systems, media, financial and logistics and general products & real estate, but the Presperse acquisition is expected to complement its activities in the company’s Life Science division.