LANXESS
Acquisition of Emerald Kalama Chemical / A quarter of sales plastics-related
 The headquarters of the US company on the Columbia River in Washington State (Photo: Emerald Kalama) |
With the planned acquisition of Emerald Kalama Chemical (Vancouver, Washington / USA; www.emeraldkalama.com), German speciality chemicals and engineering plastics producer Lanxess (Cologne; www.lanxess.com) will strengthen its consumer segment and open up new application areas with strong margins, CEO Matthias Zachert said, while announcing the USD 1.04 bn (EUR 867m) deal on 14 February 2021.
Lanxess has signed a binding agreement to acquire the US company that manufactures a range of speciality chemicals from its private equity owner, American Securities. The purchase, being financed through existing liquidity, is expected to close in the second half of 2021, following regulatory approval. While three quarters of the new acquisition’s portfolio is made up of consumer products used in food preservatives, cosmetics, flavours and fragrances or animal nutrition, the remainder is focused on industrial products including plasticizers, antioxidants and vulcanization accelerators.
The subsidiary of Emerald Kalama Performance Materials is an “ideal fit” for Lanxess, said Zachert. The chemical producer, with annual sales of USD 425m and EBITDA pre-exceptionals of USD 90m, employs 500 people at sites in Kalama, Washington / USA, Rotterdam / The Netherlands and Widnes / UK. Around 45% of its sales are from North American operations.
The “very efficient setup with all production concentrated at three sites will allow it to be integrated quickly,” Zachert said, adding that he expects the new businesses to add around USD 30m in EBITDA to the Lanxess balance sheet annually. Altogether, he said this “targeted expansion” of the portfolio will keep the German company on its growth course and lift its profile in North America, while making it “even more profitable and stable”. The manufacturer of polyamides and polyurethane systems is expecting its best final quarter in eight years and, by its own admission, will significantly exceed analysts’ expectations (see Plasteurope.com of 29.01.2021).
Lanxess has signed a binding agreement to acquire the US company that manufactures a range of speciality chemicals from its private equity owner, American Securities. The purchase, being financed through existing liquidity, is expected to close in the second half of 2021, following regulatory approval. While three quarters of the new acquisition’s portfolio is made up of consumer products used in food preservatives, cosmetics, flavours and fragrances or animal nutrition, the remainder is focused on industrial products including plasticizers, antioxidants and vulcanization accelerators.
The subsidiary of Emerald Kalama Performance Materials is an “ideal fit” for Lanxess, said Zachert. The chemical producer, with annual sales of USD 425m and EBITDA pre-exceptionals of USD 90m, employs 500 people at sites in Kalama, Washington / USA, Rotterdam / The Netherlands and Widnes / UK. Around 45% of its sales are from North American operations.
The “very efficient setup with all production concentrated at three sites will allow it to be integrated quickly,” Zachert said, adding that he expects the new businesses to add around USD 30m in EBITDA to the Lanxess balance sheet annually. Altogether, he said this “targeted expansion” of the portfolio will keep the German company on its growth course and lift its profile in North America, while making it “even more profitable and stable”. The manufacturer of polyamides and polyurethane systems is expecting its best final quarter in eight years and, by its own admission, will significantly exceed analysts’ expectations (see Plasteurope.com of 29.01.2021).
15.02.2021 Plasteurope.com [246978-0]
Published on 15.02.2021
German version of this article...