LANXESS has signed a binding agreement to acquire 100 percent shares in Emerald Kalama Chemical. The US-based company is a manufacturer of specialty chemicals, especially for the consumer segment, and is majority-owned by affiliates of the US private equity firm American Securities LLC.
Transaction Expected to Be Completed in Second Half of 2021
The enterprise value of Emerald Kalama Chemical amounts to USD 1.075 billion. After deducting debt-like items, the purchase price is around USD 1.04 billion, which LANXESS will finance from existing liquidity. The transaction is expected to be completed in the second half of 2021. It is still subject to approval by the relevant authorities.
Within three years following the completion of the transaction, LANXESS expects an additional annual EBITDA contribution of around USD 30 million (EUR 25 million*) from synergy effects. The acquisition will already be earnings per share accretive in the first fiscal year after its completion.
Targeted Portfolio Expansion in the Consumer Protection Segment
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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,” said Matthias Zachert, chairman of the board of management of LANXESS AG.
Source: LANXESS