LANXESS completes acquisition of Emerald Kalama Chemical – Portfolio for industrial applications expanded
- Acquisition strengthens business in specialty chemicals for industrial applications
- Portfolio for the plastics, paint and varnish and adhesives industries significantly expanded
Today, August 3, specialty chemicals company LANXESS completed the acquisition of Emerald Kalama Chemical. The U.S.-based company is a world-leading manufacturer of specialty chemicals. LANXESS signed a purchase agreement on February 14, 2021. All required regulatory approvals have been received. LANXESS financed the purchase price of around USD 1.04 billion (EUR 870 million) from liquid funds.
In 2020, Emerald Kalama Chemical generated global sales of around USD 425 million (EUR 375 million) and EBITDA pre-exceptionals of around USD 90 million (EUR 80 million). Seventy-five percent of sales were attributable to business with specialty products for the consumer care market, especially products for flavors and fragrances, as well as preservatives for use in food, household products and cosmetics. One quarter of sales originated from business with specialty chemicals for industrial applications. With the closing of the transaction, LANXESS grows by around 470 employees and the three production sites in Kalama/Washington (USA), Rotterdam (Netherlands) and Widnes (Great Britain).
Acquisition strengthens portfolio for the plastics, paints and coatings as well as adhesives industries
The second-biggest acquisition in LANXESS’s history sees the company expanding its range of specialty chemicals for industrial applications, especially for the plastics, paints and coatings as well as adhesives industries.
One important addition to the new LANXESS portfolio is the K-Flex range of non-phthalate plasticizers and coalescents for adhesives, coatings, sealants and vinyl applications. K-Flex plasticizers optimize production processes and end product properties. They are highly compatible with polar polymers in water-based adhesive systems and improve film formation in paints and coatings. During the manufacture of PVC articles, the rapid-gelling dibenzoates can help to speed up processing.
“The new products broaden the existing LANXESS range and offers growth opportunities in the area of non-phthalate plasticizers which meet the most modern requirements of the plastics processing industry,” underlines Dr. Thomas Facklam, Head of Global Application Technology in the Polymer Additives business unit.
Other important additions to the overall portfolio for industrial applications include Kalama Vitroflex plasticizers for the manufacture of polysulfide sealants and Modulast modifiers, which were developed for use in reactive polyurethane systems.
Last but not least, benzoic acid, benzaldehyde and benzoate salts supplements the LANXESS offer in future. These are used as intermediates, building blocks and additives in a number of industrial applications, e.g. for the production of esters, alkyd resins or corrosion inhibitiors.
Detailed information about the company’s products can be found at www.lanxess.com.
Euro figures based on exchange rate EUR/USD = 1.14 (average rate in 2020). The purchase price was converted using current exchange rate EUR/USD = 1.19.
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.
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