THE WHAT? Lanxess is accelerating its growth course and has signed a binding agreement to acquire Emerald Kalama Chemical for approximately US$1.04 billion, financed from existing liquidity.
THE DETAILS The transaction is expected to complete in the second half of 2021 and remains subject to regulatory approval.
Emerald Kalama Chemical employs some 500 staff worldwide and runs production sites in the US, Netherlands and UK.
According to Bloomberg, the transaction marks the start of an acquisition phase which could see Lanxess strike further deals, some 10 possible targets are being evaluated.
THE WHY? Matthias Zachert, Chairman of the Board of Management of Lanxess explains, “We are gaining further momentum on our growth course. The businesses of Emerald Kalama Chemical are an ideal fit for us. We will further strengthen our Consumer Protection segment and open up new application areas with strong margins, for example in the food industry and animal health sector. In addition, we will also enlarge our presence in our growth region of North America. All this will make us even more profitable and stable.”