LANXESS signs contract to sell Urethane Systems business for an enterprise value of €460 m to UBE Corporation -proceeds will be used to reduce net financial debt
Ad hoc according to Art. 17 paragraph 1 MAR
Specialty chemicals company LANXESS signed a contract to sell its Urethane Systems business to UBE Corporation on 3rd October, 2024. The enterprise value amounts to €460 m with expected proceeds of around €500 m. With this transaction LANXESS exits the last remaining polymer business.
The Urethane Systems business comprises 5 manufacturing sites globally as well as application laboratories in the USA, Europe and China. UBE Corporation will take over all operations from LANXESS with a total of around 400 employees. The Urethane Systems business generated sales of around €250 m last twelve months June 2024.
LANXESS will use the proceeds to reduce its net debt. The leverage ratio (net debt / EBITDA pre) will likely be reduced by ~0.5x.
The transaction remains subject to the approval of the relevant authorities. LANXESS expects the transaction to close in the first half of 2025.
Cologne, 3rd October 2024
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