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Industry News



Published August 4, 2010
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Lipo Chemicals Merges with Vantage Specialty Chemicals

Vantage Specialty Chemicals, Chicago, a producer of specialty chemicals, has merged with Lipo Chemicals, Inc., Paterson, NJ, and its affiliates, including Ruger Chemicals, Inc., Linden, NJ, Lipo Technologies, Inc., Vandalia, OH and Lipo’s affiliate companies that are incorporated in Argentina, Brazil, Chile, China, Colombia, Costa Rica, France, Guatemala, Mexico, Peru, South Africa and Venezuela.

Lipo is a provider of ingredients and ingredient technologies to the personal care industry and a leader in delivery system technologies. Ruger Chemical is a cGMP distributor of pharmaceutical and cosmetic ingredients.

Vantage Specialty Chemicals includes Vantage Oleochemicals, Chicago, a fatty acid and glycerin manufacturer, and Lambent Technologies, Gurnee, IL, a North American oleochemical derivatives supplier, specializing in nonionic surfactants.

“Lipo’s excellent reputation for service and innovation in the personal care market and its global reach are strategic assets of the company and provide a strong platform for growth,” said Julian Steinberg, chief executive officer, Vantage Specialty Chemicals.

Lipo Chemicals and its affiliates will operate as a division of Vantage Specialty Chemicals. Lipo will continue to be headquartered in New Jersey. The current management of Lipo, which includes members of the Frischling family, will remain with the business.

The combination will leverage the global personal care brand presence of Lipo, allowing the combined company to achieve accelerated growth by expanding existing business relationships in North America, and creating new channels to market in Europe, Africa, Asia and Latin America. The companies will maintain and grow the Lipo brand in the personal care market.

“We are very excited to partner with Vantage,” said Craig Frischling, president of Lipo Chemicals and Ruger Chemical. “Lipo’s customers will benefit from the added resources of the combined company while maintaining Lipo’s focus and strength in the personal care market.”

The merger creates a diversified U.S.-based specialty chemicals company with sales approaching $500 million, and more than 550 employees at 17 locations across 13 countries.


BASF To Acquire Cognis
After months of negotiations, BASF has reached an agreement to acquire Cognis in a deal valued at approximately $3.8 billion. The acquisition, which is subject to clearance by the merger control authorities, is expected to close by November 2010.

“With the acquisition of Cognis, we are strengthening our portfolio with cyclically robust and profitable businesses and further expanding our position as the world’s leading chemical company,” said Dr. Jürgen Hambrecht, chairman of the board of executive directors of BASF.

In the deal, BASF will pay a purchasing price of €700 million to Cognis Holding Luxembourg S.à r.l., controlled by Permira Funds, GS Capital Partners and SV Life Sciences. Including net financial debt and pension obligations, the enterprise value of the transaction is €3.1 billion.

“With the support of our owners Permira Funds and GS Capital Partners, we have become a leading innovative supplier of specialty chemicals,” stated Dr. Antonio Trius, chief executive officer of Cognis in a press statement released by BASF. “In particular, our focus on wellness and sustainability and our expertise in renewable raw-material based products have been our main success factors. We are convinced that there are excellent opportunities through combining the strengths of Cognis and BASF.”

Cognis will be integrated into BASF’s Performance Products segment, a unit that had sales of approximately $11.5 billion in 2009.


Innospec’s Surfactant Used In Award-Winning Shampoo
The 2010 Cosmetic Executive Women Beauty Insider’s Choice Awards has voted Living Proof’s No Frizz Shampoo as the winner for best new hair care product in the prestige category. Living Proof, based in Cambridge, MA, chose Innospec Active Chemical’s new innovative sulfate-free surfactant Iselux to work with its proprietary polyfluoro ester technology because it provided an ultra-rich lather while leaving hair soft and smooth with no heavy residue.

“Living Proof embraced our Iselux technology and was first to market with their No Frizz Shampoo featuring Iselux as the primary surfactant. We are very pleased to have had the opportunity to work with Living Proof and congratulate them on this award,” said Phil Matena, vice president of sales and marketing at Innospec.
More info: www.innospec.com


Zenitech Names Ultra East Coast Distributor
Ultra Chemical, Red Bank, NJ, has been named a new distributor for Zenitech in the East Coast region of the U.S. Effective July 1, Ultra Chemical’s territory covers Connecticut to Florida. The firm’s product lines in the color segment have excellent synergies with Zenitech products, according to Zenitech LLC, which is based in Old Greenwich, CT.
More info:art@ultrachem.com or clv@zenitech.com


ICMAD Elects Officers And Board Members
ICMAD, the Independent Cosmetic Manufacturers and Distributors Association, has re-elected Pamela Jo Busiek of CBI Laboratories, Ft. Worth, TX, as president of the association.

Other officers elected during the group’s board meeting include:
Vice presidents—Carl Geffken of Carl Geffken Consultants, Guilford, CT, and Pamela Viglielmo of The Gramercy House, Southport, CT;
Treasurer—Craig Weiss of Consumer Product Testing Co., Fairfield, NJ; and
Secretary—Sharon Blinkoff ofVenable LLP, New York, NY.

In addition, Stan Katz of Cosmetic Index, Northport, NY, and Marva Kalish of Marketing Plus Consultants, Douglaston, NY, were re-appointed chair and vice chair, respectively.

Elected for one year terms on the board of directors were Karen Acker of KA Consulting Corp., Nyack, NY; Dr. Robb Akridge of Pacific Bioscience Laboratories (Clarisonic), Bellevue, WA; Paul Aloe of Magic of Aloe/Aloe Cosmetic Labs, Pennsauken, NJ; Daniela Ciocan of SoGeCos Americas, Las Vegas, NV; Curran Dandurand of Jack Black LLC, Carrollton, TX; Jeff Murad of Murad Skin Research Labs, El Segundo, CA; Gun Nowak of Face Stockholm Ltd., Hudson, NY, Flori Roberts of The Roberts Group, NJ, Shrewsbury, NJ; and Herb Wilson of Imos Wilson, New York, NY.

Elected for three-year terms to the board of directors were Michael Benjamin of Temptu Marketing, Inc., New York, NY; Ian Ginsberg of Bigelow Trading Ltd., New York, NY; Howard Hirsch of HDH Holdings, Basking Ridge, NJ; Marva Kalish of Marketing Plus Consultants, Douglaston, NY; Deborah Lippmann of Lippmann Enterprises, LLC, New York, NY; and Pamela Viglielmo of The Gramercy House, Southport, CT.
More info: www.icmad.org

Coppertone’s Suncare 2020 Symposium Recommends Clarification, Targeted Education
The Coppertone Solar Research Center has published key insights from its recent Suncare 2020 Symposium held in New York City. The event convened selected thought leaders from government, medicine, academia, advocacy and industry to initiate dialogue and capture vision around the best ways to educate the public in today’s evolving sun care environment.

“Skin cancer is an epidemic, and yet it’s often a preventable disease. Unfortunately, many consumers still see challenges in adopting healthy sun care behaviors, either because they still believe a tan is attractive or because they don’t understand the risks of not protecting their skin,” said Dr. David J. Leffell, professor of dermatology and surgery at the Yale School of Medicine, who served as the symposium’s moderator. “Knowledge is a powerful tool in empowering consumers.”

Participants agreed an urgent need exists to clarify conflicting messages for Americans surrounding sun care, to increase education efforts around tanning addiction and empower consumers to take control of their skin health. Recommendations focused on a collaborative approach to improve the public’s awareness and understanding of proper sun protection.

Four critical themes emerged from the symposium:
1. Create information to prompt behavior change. A gap remains between consumer sun care knowledge and behavior, potentially because adopting long-term healthy skin habits may not show immediate, tangible results. Participants agreed that fear-based approaches to fostering positive behavior change are less desirable than extensive education regarding safe sun practices. Symposium attendees recommended empowering consumers with incentives and information to help drive healthier skin protection choices.

2. Help educate the public on navigating expected sunscreen labeling and product performance rules. The Food and Drug Administration (FDA) is expected to release in October its final rule on the sunscreen monograph, which may include changes on such elements as usage, active ingredients, testing and product labeling. The symposium posed a call to action to help consumers clearly understand what these changes may mean.

3. Separate myth from reality. The public is inundated with inconsistent messages in the media about topics such as tanning, vitamin D, sunscreen ingredients and good sun protection habits. Often this information generates misunderstanding that places the public at increased risk for making unhealthy choices. A collaborative effort is needed in order to help consumers better understand the facts.

4. Tailor education efforts to resonate with generational and cultural needs. Participants agreed cultural and generational cohorts maintain different attitudes and behaviors about sun care. For instance, many young women still believe a tan signifies beauty. The experts suggested creating education campaigns for children to help them adopt healthy sun care habits.

Prompted by the symposium’s call to action, the Coppertone Solar Research Center has created a checklist to “RAISE” public awareness on expected elements to be addressed in FDA’s upcoming final sunscreen monograph. Those key elements include:
• Rating UVA Protection—New UVA information will likely be required on sunscreen labels in addition to SPF.
• Anti-Aging—Products with SPF may be further limited in making claims related to premature skin aging.
• Ingredients—New active ingredients or active ingredient combinations could be approved.
• SPF Cap: SPF values may be capped.
• Expression of Claims: Claims language on sunscreen labels could change, according to Coppertone.

Real American Brands To Add New Division
Real American Brands, Inc. (RLAB) said it is mounting an effort to bring more new“green” brands to market.

According to chief executive officer Doug Newton, the company is now associated with Takasago International.

“RLAB’s proposed new products will be designed to show substantivity, diffusivity, and be stable and safe, while being made with an awareness of the importance of eliminating any and all adverse effects and risks everywhere in the environment,” said Newton.

In addition to working with Takasago, RLAB has recently entered into an exclusive representation agreement with a brand well-known for its focus on 100% green, non-toxic cleaning products, whose national expansion plans and options are being developed by RLAB and Takasago.

RLAB, New York, owns U.S. trademarks for Lasso, Lariat and Riata and the new, recently applied for “Pride” in the fragrance category. The company’s stable of U.S. trademarks including “Born & Bred in the USA,”“Billy Martin’s” and Green Blues, the name of the company’s new eco-friendly blue jean brand.


Brenntag To Distribute BASF’s Inoterra, Trilon M
BASF Care Chemicals has tapped Brenntag, Inc. as the distributor for Inoterra and Trilon M products.

Brenntag’s full line distribution companies in the U.S. and Canada, as well as the e-distributor service unit, Brenntag Solutions Group, will represent these products and their sustainable attributes in the distribution channel segment.

“Brenntag provides the technical expertise and industry focus to service the timely promotion of these readily bio-degradable materials for our distribution channel customers,” said Frank Bergonzi, director, corporate distribution for BASF Corporation.

”Brenntag North America is excited about the representation of BASF’s Inoterra and Trilon M product lines,” added Bill Fluharty, vice president of Brenntag Solutions Group. “The Inoterra and Trilon M lines are a natural fit as Brenntag continues to expand our environmentally sustainable product portfolio.”

BASF introduced Inoterra surfactant systems in 2007 for use in the I&I market. Primarily designed as an effective alternative to nonylphenol ethoxylate surfactants that are under pressure to be phased out in North America, Inoterra products can be used in a wide range of applications, including general-purpose cleaners, floor care products, ware washing detergents, disinfectants and sanitizers, laundry detergents, vehicle wash aids and hand cleaners.The surfactant’s low gelling profile allows for faster formulation and eliminates the need to add water slowly during the formulation process, resulting in less energy needed to incorporate other nonionic additives into water-based formulations.

Inoterra products are listed in the CleanGredients database and approved for use in environmentally responsible products by the EPA’s Design for Environment (DfE) program through the Safer Detergents Stewardship Initiative (SDSI).

The Trilon M brand name stands for methylglycinediacetic acid (MGDA), a high-performance, eco-friendly, safe complexing agent in the class of aminocarboxylates. Complexing agents reduce metal ion concentrations in aqueous solutions. They do so by converting poorly soluble compounds to compounds that dissolve readily in water, increasing the cleaning effect of detergents and dishwashing agents, as well as industrial and all-purpose cleaners. Trilon M is readily biodegradable and available in liquid and solid forms, and does not require health and environment labeling. It is suitable for use in modern dishwasher detergents as a replacement for phosphate.
More info: www.basf.com


BioScreen Lab Completes FDA, cGMP Inspection
BioScreen Testing Services, Inc. has successfully completed an FDA, cGMP inspection of its Torrance, CA laboratory operations. The inspection supports three ANDA and one NDA submission.

BioScreen participated in the analytical and microbiological portions of the submissions for FDA premarket approval. The focus of the inspection was on BioScreen’s Quality Management System and compliance with FDA Good Manufacturing Practice (GMP). The inspection also addressed those elements of an FDA pre-approval investigation associated with the analytical data specific to each compound.

BioScreen said FDA has notified the company of its intent to recommend approval of BioScreen’s data in support of the drug applications.
More info: www.bioscreen.com


ACI Refutes Study About Cleaning Products
The American Cleaning Institute (ACI) has challenged accusations leveled in a questionable study that attempts to link cleaning products to breast cancer.

A research piece by the Silent Spring Institute published in Environmental Health far overreaches in its conclusions based on self-reported uses of cleaning products by persons diagnosed with breast cancer, according to ACI.

“Simply put, this research is rife with innuendo and speculation about the safety of cleaning products and their ingredients,” said Richard Sedlak, ACI’s senior vice president of technical and international affairs. “This is all based on the most cursory look at the scientific literature and the recollection of breast cancer survivors as to the products they used 15 to 20 years ago.” 


“Although the authors recognize the potential bias in their results, present conflicting findings, and have no real gauge as to the products used by the interviewees so long ago, they proceed to make unscientific assumptions on a very shaky foundation. Unfortunately, this work sheds little light on the real causes of breast cancer.The safe and responsible manufacture and use of cleaning products is an absolute top priority within our industry,” Sedlak added. “Further, the plausibility of avoiding cleaning products, as put forth by the researchers, in a world where hygiene and cleanliness are the first barriers to disease prevention, is theoretically plausible, but the adverse effect on public health would be real.”

More info: www.cleaninginstitute.org


Correction: Coast Southwest Celebrates 25th Anniversary
Due to an editing error, the industry news headline on p. 128 in the July issue was incorrect. Coast Southwest is celebrating its 25th anniversary this year. Happi regrets the error.


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