LANXESS has completed its acquisition of Chemtura, one of the world's leading suppliers of flame retardant and lubricant additives.
The Cologne-based specialty chemicals company confirmed today (April 21st 2017) that all the required regulatory authorities have cleared the transaction, with Chemtura shareholders voting to approve the deal in February of this year.
Chemtura, which has a total enterprise value of €2.4 billion (£2 billion), is LANXESS' largest acquisition. The deal has been devised to expand its additives portfolio and position LANXESS as a leader in this growing field.
LANXESS has revealed that it will combine its entire additives business within the new Specialty Additives segment straight away. This segment is an extra arrow to the LANXESS group bow, with annual sales of approximately €2 billion and some 2,900 employees worldwide. The segment comprises the new Additives and Rhein Chemie business units, within which flame retardants and lubricants are anchored. The Additives business unit is led by Anno Borkowsky, while Philipp Junge heads up the the Rhein Chemie business unit, which includes LANXESS' existing rubber and colour additives businesses.
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.
"We are now one of the leading suppliers of industrial lubricants and possess an integrated value chain," explained Borkowsky.