Sat. Jan 28th, 2023

Mumbai (Maharashtra) [India], August 06: Specialty chemicals company LANXESS completed the second-largest acquisition in its history on August 3 with the takeover of Emerald Kalama Chemical. The US-based specialty chemicals manufacturer was majority-owned by affiliates of private equity firm American Securities LLC. All required regulatory approvals have been received. The enterprise value of Emerald Kalama Chemical was USD 1.075 billion (EUR 900 million). After deducting liabilities, the purchase price was approximately USD 1.04 billion (EUR 870 million), which LANXESS financed from existing liquidity.

“Emerald Kalama Chemical gives us another major boost on our growth path. The new businesses are an optimal strategic fit for us. We are strengthening our position in markets with attractive growth rates and opening up new high-margin application areas, especially in the beverage and food sector or in cleaning and cosmetic products. What’s more, Emerald Kalama Chemical is perfectly backward integrated – strengthening our value chain in Consumer Protection. This segment is thus an important engine on the way to making LANXESS even more stable and profitable,” said Matthias Zachert, Chairman of the Board of Management of LANXESS AG.

“A strong team is now working at full speed to ensure a rapid integration.”

With the closing of the transaction, LANXESS grows by around
470 employees and the three production sites in Kalama/Washington (USA), Rotterdam (Netherlands), and Widnes (Great Britain).

In 2020, Emerald Kalama Chemical achieved global sales of approximately USD 425 million (EUR 375 million) and EBITDA pre exceptionals of around USD 90 million (EUR 80 million). Within three years, LANXESS expects an additional annual EBITDA contribution of around USD 30 million (EUR 25 million) from synergy effects. The acquisition will already be earnings per share accretive in the first fiscal year after its completion.

Emerald Kalama Site in Kalama, USA

Expansion of the product portfolio for the consumer care sector

Around three-quarters of the sales of the acquired businesses are attributable to specialty products for the consumer care market.

The acquisition makes LANXESS one of the leading providers of products for flavors and fragrances – an area in which the specialty chemicals company expects to see sustained strong growth rates. The substances are used primarily in personal care products, cosmetics, and exclusive fragrances, as well as food and beverages. The product range in the new LANXESS portfolio includes more than 30 aroma chemicals that provide earthy, floral, fruity, spicy, and herbal notes.

LANXESS is incorporating this business into the newly established Flavors & Fragrances business unit, which will become part of the Consumer Protection segment.

The acquisition also strengthens LANXESS’ leading position in the preservatives business. The new products will be used in high-growth applications in the food and beverage industry as well as in detergents, fabric softeners, cosmetics, and personal care products.

Specialty chemicals for industrial applications

Around a quarter of the sales of the acquired businesses are accounted for by specialty chemicals for high-growth industrial applications, primarily in the plastics, paints and coatings, and adhesives industries. The products will be integrated into the Polymer Additives business unit.

By dsprime

18 thoughts on “LANXESS acquires Emerald Kalama Chemical for USD 1.04 Billion”
  1. 146570 864911Considerably, the story is in reality the greatest on this noteworthy topic. I agree along with your conclusions and will eagerly watch forward to your next updates. Saying nice one will not just be sufficient, for the fantastic clarity in your writing. I will immediately grab your rss feed to stay privy of any updates! 567738

  2. 621551 74634You created some decent points there. I looked on the net for any difficulty and located most individuals goes along with together with your site. 224885

  3. It’s the best time to make some plans for the future and it is time to be happy. I’ve read this post and if I could I want to suggest you few interesting things or advice. Maybe you can write next articles referring to this article. I want to read more things about it!

  4. I’ve been absent for some time, but now I remember why I used to love this web site. Thank you, I’ll try and check back more often. How frequently you update your web site?

  5. 227446 860676This really is the suitable blog for anybody who needs to seek out out about this subject. You notice so significantly its virtually laborious to argue with you (not that I actually would wantHaHa). You undoubtedly put a brand new spin on a topic thats been written about for years. Great stuff, just great! 346097

  6. I’ve been browsing online more than three hours today, yet I by no means found any attention-grabbing article like yours. It’s pretty price sufficient for me. Personally, if all web owners and bloggers made just right content as you probably did, the web shall be much more helpful than ever before. “A winner never whines.” by Paul Brown.

  7. In the awesome design of things you actually get a B+ for effort and hard work. Where exactly you misplaced me ended up being in the facts. As people say, details make or break the argument.. And it couldn’t be more accurate right here. Having said that, allow me reveal to you what did give good results. The article (parts of it) is actually extremely engaging and this is most likely the reason why I am taking an effort to comment. I do not make it a regular habit of doing that. 2nd, despite the fact that I can certainly see the leaps in logic you come up with, I am not really sure of just how you seem to connect your details which produce the actual final result. For the moment I will subscribe to your issue however hope in the near future you link your dots better.

  8. 738974 766597Excellent publish from specialist also it will probably be a great know how to me and thanks extremely much for posting this helpful data with us all. 616232

Leave a Reply

Your email address will not be published.