Lanxess has completed its acquisition of Chemtura, one of the world's leading suppliers of flame retardant and lubricant additives, after months of negotiations.
American company Chemtura, which has a total enterprise value of €2.4 billion (£2 billion), is Lanxess' largest ever acquisition. The deal has been devised to expand its additives portfolio and position Lanxess as a leader in this growing field.
German chemical group Lanxess has revealed that it will combine its entire additives business with the new Speciality Additives segment straight away. This segment has annual sales of approximately €2 billion and some 2,900 employees worldwide. It will comprise the new Additives and Rhein Chemie business units, with controls supply of flame retardants and lubricants.
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In addition to additives, Chemtura’s urethanes and organometallics businesses will be integrated into the Lanxess portfolio, which will absorb some 2,500 Chemtura employees at 20 sites in 11 countries worldwide.
The expected annual synergy effects from the Chemtura transaction amount to approximately €100 million with realisation targeted until 2020.
“The acquisition of Chemtura is another major step in our realignment process and a significant milestone in our course of growth,” said Matthias Zachert, Chairman of the Board of Management of Lanxess. “The ‘new’ Lanxess is increasingly taking shape. The expansion of the additives business gives Lanxess an additional strong pillar. In its new set-up and with an even more balanced portfolio, the company will be much more stable and profitable. At the same time, Chemtura considerably strengthens our presence in the North American growth region. We will now focus our energy on rapidly and smoothly integrating the new businesses and employees, as well as on optimally serving our new and existing customers.”
Lanxess is significantly strengthening its competitive position in the area of lubricant additives and synthetic lubricants for industrial applications.