Germany/USA: Important Milestone Reached Lanxess to Close Acquisition of Chemours’ Clean and Disinfect Business
Specialty chemicals company Lanxess has closed the acquisition of the Clean and Disinfect business of U.S.-based chemicals company Chemours on August 31, 2016. All relevant antitrust authorities have approved the transaction.
Cologne/Germany – Lanxess has paid around €210 million for the Clean and Disinfect business, which comprises various active ingredients and specialty chemicals especially for disinfection and hygiene solutions. The company has financed this first post-realignment acquisition from existing liquidity.
“The acquisition is the first milestone on our path of growth and a further step toward strengthening our business in North America,” said Matthias Zachert, Chairman of the Board of Management of Lanxess. “The successful integration of the new business now has absolute priority so we can quickly benefit from this expansion of our specialty chemicals portfolio.”
The acquisition will be accretive to the company’s earnings per share (EPS) in the first fiscal year. The acquired business is expected to deliver an annual EBITDA contribution of around €20 million, which will be gradually increased by synergy effects to about €30 million by 2020.
The new business is to be integrated into Lanxess’ Material Protection Products business unit, not only expanding its active ingredients portfolio but also extending the value chain in the veterinary disinfection segment through to the end market.
The acquired business has three production sites in Memphis and North Kingstown in the United States and Sudbury in the United Kingdom. It achieved 2015 sales of around €100 million, with about half accounted for by the United States. The business comprises three product lines: disinfectants, potassium monopersulfate and chlorine dioxide.