Lanxess to Acquire DSM Elastomers
Lanxess AG, Leverkusen, Germany, and Dutch company Royal DSM N.V. have reached an agreement in principle involving the sale of DSM Elastomers to Lanxess for EUR 310 million on a cash and debt-free basis. DSM Elastomers produces the synthetic rubber ethylene propylene diene monomer (EPDM) under the brand name Keltan.
The price for the DSM Elastomers business represents an EBITDA multiple of roughly 6 based on the expected EBITDA of 2010. The acquisition will be financed by Lanxess out of existing liquidity and is expected to be EPS accretive as of 2011.
The transaction contracts will be finalized once a consultation process with the employees’ representatives of DSM in the Netherlands has been completed. The transaction is subject to approval from antitrust authorities. Closing is expected in the first months of 2011.
Lanxess plans to base the headquarters of the combined EPDM businesses in Sittard-Geleen, Netherlands.
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.