Chemtura Acquisition Increases Lanxess’ North American Footprint

April 25, 2017
Lanxess successfully completes acquisition of Chemtura.

Specialty chemicals company Lanxess completes the acquisition Chemtura, a supplier of flame retardant and lubricant additives. All required regulatory authorities have reportedly cleared the transaction. With a total enterprise value of EUR 2.4 billion, Chemtura is the largest acquisition in the history of Lanxess, according to the company. The acquisition significantly expands the Lanxess additives portfolio. In addition to additives, Chemtura’s urethanes and organometallics businesses will be integrated into the Lanxess portfolio. The Cologne-based specialty chemicals company will absorb some 2,500 Chemtura employees at 20 sites in 11 countries worldwide, according to Lanxess. The former Chemtura businesses reportedly generate annual sales of approximately EUR 1.5 billion. 

Through the acquisition, Lanxess increases its footprint in North America. In the region, the company is now represented at 24 production sites (previously 12) and employs approximately 2,800 staff (previously 1,500). The region’s share in global sales increases from approximately 17% to approximately 21%, according to the company. 

The expected annual synergy effects from the transaction reportedly amount to approximately EUR 100 million with realization targeted until 2020. The acquisition of Chemtura is already expected to be accretive to Lanxess’ earnings per share in the first full fiscal year after closing. Lanxess financed the acquisition through two corporate bonds and a hybrid bond as well as cash.

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