LANXESS successfully completes acquisition of Chemtura
Specialty chemicals company LANXESS has successfully completed the acquisition of US company Chemtura, one of the world’s leading suppliers of flame retardant and lubricant additives.
The transaction has been cleared by all required regulatory authorities. With a total enterprise value of €2.4 B, 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 Cologne-based specialty chemicals company will absorb some 2,500 Chemtura employees at 20 sites in 11 countries worldwide. The former Chemtura businesses generate annual sales of approximately €2.4 B.
Through the acquisition, LANXESS increased its footprint in North America and is now represented at 24 production sites (previously 12) and employs approximately 2,800 staff (previously 1,500). The region’s share in global sales increases from approximately 17% to approximately 21%, according to the company.
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 €2 B and some 2,900 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. The Rhein Chemie business unit comprises the existing rubber and color additives businesses of LANXESS.
LANXESS is significantly strengthening its competitive position in lubricant additives and synthetic lubricants for industrial applications, and it expects medium-term growth of 3% to 4% annually for the industrial lubricant additives market, driven primarily by steadily increasing demands placed on lubricants as regards performance capability and environmental compatibility.
LANXESS is also significantly expanding its market position for flame retardant additives and now also operates the former Chemtura businesses with brominated flame retardant additives, bromine and bromine derivatives. These substances are used (among other applications) in the construction industry and complement the existing LANXESS business with phosphorus-based flame retardant additives.
Effective immediately, the urethanes business will be placed within the newly formed Urethane Systems business unit. 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 and gas industries, among others.
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