LANXESS to acquire Emerald Kalama Chemical for $1bn
LANXESS, a German specialty chemicals company, has agreed to acquire US-based Emerald Kalama Chemical for $1.075 billion, inclusive of debt.
Emerald Kalama Chemical manufactures specialty chemicals, particularly for the consumer segment. The company is majority-owned by affiliates of American Securities, a US private equity firm.
Last year, Emerald Kalama Chemical registered sales of nearly $425 million.
Around 75% of Emerald Kalama Chemical’s turnover comes from specialties in the consumer segment, which include preservatives for food, cosmetic, and household applications, flavors and fragrances and also products for animal nutrition.
The other 25% of sales of Emerald Kalama Chemical are from the specialty chemicals business for industrial applications, which include the plastics and adhesives industries.
Matthias Zachert – Chairman of the Board of Management of LANXESS said: “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.”
Emerald Kalama Chemical employs around 500 employees across the world. The company has production sites across Kalama in Washington, Rotterdam in the Netherlands, and Widnes in the UK.
The deal, which is subject to approval by the relevant authorities, is anticipated to be wrapped up in the latter half of this year.