Lanxess, a US-based specialty chemicals company, has signed an agreement to sell its chrome chemicals business Lanxess CISA to Chinese leather chemicals producer Brother Enterprises for €83.05 million ($93.06 million).

The chrome chemicals business, which belongs to the Lanxess Leather business unit, generates annual sales of around €100 million.

Brother Enterprises will acquire Lanxess’s two chemical factories in South Africa at Newcastle and Merebank, as part of the deal.

The Newcastle chemical factory produces sodium dichromate, which is in part processed into chromic acid. The chemical factory in Newcastle employs approximately 220 people.

At the Merebank chemical factory, Lanxess, on a contract basis, will continue to produce chrome tanning salts from sodium dichromate for Brother Enterprises until 2024.

Commenting on Brother Enterprises acquisition of Lanxess CISA, Matthias Zachert – Chairman of the Board of Management of LANXESS, said: “We have successfully reorganized our chrome chemicals business in recent years.

“However, it no longer fits in with our strategic focus on specialty chemicals. We are therefore convinced that future growth and the further development of the business can be better implemented under the leadership of Brother Enterprises.”

Closing of Brother Enterprises acquisition of Lanxess CISA, which is subject to approval by the relevant antitrust authorities, is expected to occur by the end of 2019.

  Brother Enterprises, China, Lanxess, Lanxess CISA, Matthias Zachert, South Africa