SGS acquires IEC to strengthen its position in cosmetic testing

SGS, a Swiss-based testing, inspection and certification company, announced on July 10 that it has acquired IEC (Institut d'expertise clinique), a leading French institution for cosmetic clinical research. The transaction amount was not disclosed.

Founded in 1990 and headquartered in Lyon, France, IEC has nearly 150 full-time employees and provides testing services to leading companies in the cosmetics and personal care industries, as well as in dermatology, hygiene and ophthalmology. IEC specializes in clinical safety and efficacy trials, in vitro testing, sensory analysis and consumer testing. The company also has operations in Bulgaria, South Africa and Asia.

IEC President Étienne Camel said the move was "very exciting." Joining SGS will help IEC take advantage of "the many synergies that such a global player offers, whether in innovation, marketing, best practices or international expansion," he added.

The completion of the acquisition is subject to customary pre-closing conditions, including a consultation process with French employees.

"This acquisition is in line with our strategic objectives and further strengthens our global leadership in cosmetics and hygiene testing," said SGS CEO Géraldine Picaud in a press release.

SGS, headquartered in Geneva, inspects and assesses the safety of a large number of products, including toys, cosmetics and food, as well as minerals or parts for the automotive industry. The company has a turnover of 6.6 billion Swiss francs (6.8 billion euros) in 2023.

"For SGS, cosmetics testing is an interesting market segment with good growth potential," said Daniel Bürki, analyst at Zurich Cantonal Bank, in a stock market commentary.