USA: Speciality Chemicals Lanxess Announces Acquisition of Solvay's Phosphorus Additives Business in the USA
Specialty chemicals company Lanxess and Solvay have signed an agreement for the Germany company to acquire the phosphorus chemicals business with a US production site from Belgian chemical group.
Cologne/Germany — The transaction is projected to conclude in the first half of 2018, subject to customary regulatory approvals. The acquisition complements the company’s strategy to grow its business in mid-sized markets and in the regions North America and Asia.
The site in Charleston, South Carolina, includes six production units, where roughly 90 employees manufacture phosphorus chloride plus numerous derivative products such as flame-retardants and intermediates for the agrochemical industry. The business represents annual sales of around € 65 million (approx. $ 77 million).
"With this acquisition, we are benefitting from a North American platform for phosphorus-based specialty chemicals — a key component of our additive business — and are able to further drive our growth in this key region," said Anno Borkowsky, General Manager of the Additives business unit at Lanxess.
With annual sales of around € 2 billion ($ 2.36 billion and roughly 2,000 employees around the globe, the additives business is an important pillar of the group's operations.