Select Page

In April, Lanxess agreed to acquire the Clean and Disinfect business of US-based chemical company Chemours (NYSE: CC), for $230 million in cash. Chemours was created in 2015 as a spinoff from the DuPont (NYSE: DD) Performance Chemicals businesses. Chemtura has 20 sites in 11 countries and approximately 2,500 employees worldwide. The company reported sales of $1.7 billion in 2015, with 45 percent of its revenue generated in North America. 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 Lanxess. “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.” Lanxess, based in Stuttgart, Germany, reported sales of €7.9 billion in 2015, with 16,700 employees in 29 countries, and 55 production sites worldwide. The company’s core business is the development, manufacturing and marketing of chemical intermediates, specialty chemicals and plastics. Through Arlanxeo, a joint venture with Saudi Aramco, Lanxess is also a leading supplier of synthetic rubber. Lanxess was spun off by Bayer AG in 2005. “The transaction provides premium value to our shareholders and benefits our customers and employees by making Chemtura part of a much larger, stronger global enterprise with the resources to fully support a more diverse suite of specialty chemicals products and services,” said Craig A. Rogerson, president, chief executive and chairman of Chemtura. The acquisition will be financed through senior and hybrid bonds, as well as from existing liquidity. The deal is expected to close around mid-2017, subject to approval by Chemtura shareholders, regulatory approvals and other customary closing conditions. Morgan Stanley & Co.  acted as financial advisor and Davis Polk & Wardwell LLP acted as legal advisor to Chemtura.]]>