LANXESS signs contract to acquire Chemtura
Specialty chemicals company LANXESS has signed a contract to take over the US-based specialty chemicals company Chemtura Corporation. Chemtura is one of the major global providers of high-quality flame retardant- and lubricant additives. LANXESS is offering all cash consideration of USD 33.50 per share.
For the transaction with an enterprise value of around EUR 2.4 billion LANXESS has secured bridge financing. The bridge financing will quickly be refinanced via senior bonds and a hybrid bond. Furthermore, LANXESS will use existing liquidity for financing.
Closing is subject to approval by Chemtura shareholders, any required regulatory approvals and certain other customary closing conditions. Closing of the transaction is anticipated mid-2017.
Chemtura employs worldwide approximately 2,500 employees and has 20 sites in 11 countries. The company’s headquarters are in Philadelphia, Pennsylvania. The stock market listed company reported sales of around EUR 1.5 billion in the last four quarters and EBITDA pre exceptionals of approximately EUR 245 million. Around 45 percent of its turnover are generated in North America. In addition to additives, the portfolio also comprised urethanes and organometallics.
A combination of both companies would materially expand LANXESS’ business activities in additives for lubricants and flame retardants.
Against the backdrop of the acquisition, the announced share buy-back of around EUR 200 million will not be pursued further.
Forward-Looking Statements
This company release contains certain forward-looking statements, including assumptions, opinions, expectations and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of LANXESS AG to differ materially from the estimations expressed or implied herein. LANXESS AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors, nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecast developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, estimates, targets and opinions contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, no representative of LANXESS AG or any of its affiliated companies or any of such person's officers, directors or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.
