German specialist chemicals company Lanxess has with success completed the acquisition of Chemtura, a US company that provides flame retardent and lubricant additives.
All necessary regulative approvals precedent to the current dealings are happy.
In Gregorian calendar month this year, Chemtura’s shareholders approved this acquisition.
Carrying a complete enterprise worth of €2.4bn, the Chemtura acquisition considerably expands Lanxess’ additives portfolio.
With the acquisition currently complete, Chemtura’s urethanes and organometallics businesses are integrated into the Lanxess portfolio.
Lanxess will absorb nearly 2,500 Chemtura workers in operation at twenty sites in eleven countries worldwide.
The combined Chemtura businesses generated annual sales of nearly €1.5bn.
Lanxess board of management chairman Matthias Zachert: “The acquisition of Chemtura is another major step in our realignment method and a big milestone in our course of growth.
“The ‘new’ Lanxess is more and more taking form. The enlargement of the additives business provides Lanxess a further sturdy pillar. In its new set-up and with an excellent additional balanced portfolio, the corporate are way more stable and profitable.
“At constant time, Chemtura significantly strengthens our presence within the North yankee growth region.
“We can currently focus our energy on speedily and swimmingly desegregation the new businesses and workers, moreover as on optimally serving our new and existing customers.”
The acquisition will increase Lanxess’ production sites in North America from twelve to twenty four.
The region’s share in international sales conjointly improves to twenty first from the prevailing Revolutionary Organization 17 November.
The anticipated annual activity effects from the acquisition area unit nearly €100m, with realisation targeted till 2020.
Lanxess supported the acquisition through a mixture of money and bonds, together with 2 company bonds and a hybrid bond.
The deal can see Lanxess mix the complete additives business at intervals the new Specialty Additives phase.
The company conjointly intends to strengthen its position within the phase of stuff additives and artificial lubricants for industrial applications.
It expects a growth of around 3%-4% annually for the economic stuff additives market, primarily thanks to the steady increase in demand for lubricants.
The new urethanes business are placed at intervals the new shaped ester Systems business unit.
This business includes a product vary of hot-cast prepolymers, special binary compound ester dispersions and polyester polyols that area unit utilized in construction, mining, petroleum, athletic instrumentation and physics industries.