SGS to strengthen cosmetics testing footprint with IEC acquisition

PARIS – SGS, the Swiss testing, inspection and certification company, has entered into an agreement to acquire France’s Institut d’Expertise Clinique (IEC), a move that will strengthen its position as a global leader in cosmetics.

The financial terms of the transaction were not disclosed.

IEC is a leading cosmetic clinical research organization working in the field of advanced clinical testing solutions.

Safety is paramount for the entire cosmetics industry: its suppliers, brands and consumers.

In the European Union, regulations require that any cosmetics placed on the market in Europe must be safe to use. Manufacturers must therefore ensure that products undergo an expert scientific safety assessment before they are placed on the market.

“IEC conducts multi-center safety and efficacy studies, in vitro tests, sensory analyses and consumer tests for dermatological and ophthalmic cosmetics, personal care and hygiene products,” SGS said in a statement on Wednesday.

Based in Lyon, France, IEC was founded in 1990. It operates in Europe, Asia and Africa and has an international customer base. The company employs 150 full-time staff.

Etienne Camel, President of IEC, said joining SGS, a leader in the cosmetics industry, “will help us serve our customers even better by leveraging the many synergies that such a global player offers, both in terms of innovation, marketing, best practices and international expansion.”

Géraldine Picaud, CEO of SGS, said: “This acquisition is in line with our strategic objectives and further strengthens our global leadership in cosmetics and hygiene testing. IEC brings innovative capabilities and strong scientific expertise to SGS, as well as complementary geographic reach and service offerings.”

In Europe, the most important testing, inspection and certification companies, abbreviated as TIC, also include Bureau Veritas, Intertek, Tüv Süd and Eurofins Scientific.

The European Union has a strong regulatory framework for many sectors, with rules in place to ensure safety and quality.

“As companies seek to comply with these regulations, this has boosted demand for TIC services,” Straits Research wrote. The European TIC market was estimated to be valued at $88 billion in 2021 and is expected to reach $129 billion by 2030.