LANXESS has announced its intention to acquire US-based Chemtura Corporation, a major global provider of flame retardant and lubricant additives.
In the biggest acquisition in the German company’s history, the move will see LANXESS, move away from core business unit as the world's largest producer of synthetic rubber, and significantly expand its additives portfolio.
The transaction, worth €2.4 billion, will be financed by LANXESS mainly through existing funds and new debt. Under the terms of the agreement, Chemtura shareholders will receive USD 33.50 per share.
Headquartered in Philadelphia, Pennsylvania, Chemtura has 20 sites in 11 countries and approximately 2,500 employees worldwide. In the last four years it has reported sales of €1.5 billion, with 45 percent of revenue generated in the US. The acquisition of Chemtura will vastly increase LANXESS’ presence in North America.
Chemtura’s two additive segments form the main pillars of the company’s business. Both will, together with LANXESS’ Rhein Chemie Additives business unit (ADD), form the new ‘Performance Additives’ segment after the closing of the transaction, expected mid 2017. In addition to additives, Chemtura’s portfolio includes urethanes and organometallics.
“With this acquisition, we are forming a champion in the field of additives and are strengthening our already profitable portfolio,” said Matthias Zachert, Chairman of the Board of Management of LANXESS AG.
“Through the acquisition, we are further implementing our strategy to become a more resilient and profitable chemical company. We are significantly building on our competitive positioning in medium-sized markets and increasing our presence in North America. LANXESS is taking a next and major step forward on its growth path.”