Lanxess Completes Acquisition of Chemtura
Specialty chemicals company Lanxess AG, Cologne, Germany, has successfully completed the acquisition of U.S. company Chemtura, one of the world’s leading suppliers of flame retardant and lubricant additives, earlier than originally expected effective April 21, 2017. All required regulatory authorities have cleared the transaction.
Already in February 2017, Chemtura’s shareholders voted to approve the acquisition. With a total enterprise value of EUR 2.4 billion, Chemtura is the largest acquisition in the history of Lanxess. The acquisition significantly expands the company’s additives portfolio and makes Lanxess one of the world’s leading players in this growth field. In addition to additives, Chemtura’s urethanes and organometallics businesses will be integrated into the Lanxess portfolio. The German company will absorb some 2500 Chemtura employees at 20 sites in 11 countries worldwide. The former Chemtura businesses generate annual sales of approximately EUR 1.5 billion.
“The acquisition of Chemtura is another major step in our realignment process and a significant milestone in our course of growth. The ‘new’ Lanxess is increasingly taking shape. The expansion of the additives business gives Lanxess an additional strong pillar. In its new set-up and with an even more balanced portfolio, the company will be much more stable and profitable. At the same time, Chemtura considerably strengthens our presence in the North American growth region,” said Matthias Zachert, Chairman of the Board of Management of Lanxess AG.
Through the acquisition Lanxess increases its footprint in North America. In this region, the company is now represented at 24 production sites (previously 12) and employs approximately 2800 staff (previously 1500). The region’s share in global sales increases from approximately 17 % to approximately 21 %.
Strong Pillar Additives
Effective immediately, Lanxess will combine its entire additives business within the new Specialty Additives segment. This segment is an additional pillar in the Lanxess group, with annual sales of approximately EUR 2 billion and some 2900 employees worldwide. The segment comprises the new Additives and Rhein Chemie business units. The combined business with flame retardant and lubricant additives is anchored in the Additives business unit, which is headed up by Anno Borkowsky. The Rhein Chemie business unit, headed up by Philipp Junge, comprises the existing rubber and color additives businesses of Lanxess.
New Fields of Business
The urethanes business is new for Lanxess. Effective immediately, it will be placed within the newly formed Urethane Systems business unit headed up by Markus Eckert. The product range includes hot-cast prepolymers, special aqueous urethane dispersions and polyester polyols. These are components of specialty polyurethanes, used primarily in the construction, mining, oil, gas, athletic equipment and electronics industries. These plastics are used, for example, to manufacture rollers for conveyor belts or inline skates. Urethane Systems will join the existing High Performance Materials business unit of Lanxess to form the new Engineering Materials segment.
Also new in the Lanxess portfolio is the organometallics business. These are chemical compounds that are used, among other applications, as catalysts in polymers production or for the synthesis of fine chemicals and pharmaceuticals. With immediate effect, this business is being managed in the existing Advanced Industrial Intermediates business unit of Lanxess.
LANXESS Deutschland GmbH
Would you like to subscribe to our Newsletters on plastics technology and profit from the latest information?
Looking for a new challenge? Check out our jobs market!
Patents encourage innovation: Stay on the ball with the latest innovations in the plastics industry in our patents section.