Lanxess acquires Chemours’ clean, disinfect biz €210 million

Lanxess acquires Chemours’ clean, disinfect biz for €210 million

11:10 AM, 26th April 2016
Lanxess acquires Chemours’ clean, disinfect biz for €210 million
Lanxess headquarters located in Cologne, Germany. (File photo)

COLOGNE, GERMANY: Lanxess AG said it will acquire Chemours’ clean and disinfect specialties business for €210 million, expanding Lanxess’ material protection products portfolio. Closing is expected in the second half.

The business comprises of active ingredients as well as specialty chemicals used especially in disinfectant and hygiene solutions. One of its core products is the Virkon S branded disinfectant, that is being deployed globally in the growth sector of veterinary disinfection and in the combat against major diseases such as Foot-and-Mouth disease or Avian Influenza.

The enterprise value of around €210 million will be paid by Lanxess from existing liquidity. The acquisition will be earnings per share (EPS) accretive in the first fiscal year.

“We plan to enhance our position particularly in mid-sized, less cyclical markets with high margins and sound growth prospects,” said Matthias Zachert, chairman, management board, Lanxess AG. “We have made quick headway and are now expanding our specialty chemicals portfolio which will make us more profitable and more resilient.”

Lanxess takes over Chemours’ Clean and Disinfect business with 170 employees worldwide and three production sites in Memphis and North Kingstown, US, and Sudbury, UK. In 2015, the business achieved sales of around €100 million, roughly half of which in the region of North America. “Through the acquisition, we will grow especially in the region of North America, where we still see good opportunities,” said Zachert.

The new business will be integrated into Lanxess’ material protection products business unit. “With the acquisition of Chemours’ clean and disinfect business, we are not only expanding our portfolio of active ingredients, but are also able to establish a forward integrated value chain in the veterinary disinfection segment,” said Michael Schafer, head of the material protection products business unit, Lanxess.

The clean and disinfect business is comprised of three segments: disinfectants, potassium monopersulfate and chlorine dioxide. Each segment holds leading positions worldwide and serves attractive markets that benefit from intact growth trends. Above all, the global veterinary disinfection segment is expected to grow by 6 percent annually (CAGR 2015-2020), Lanxess said.

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