LANXESS acquires Emerald Kalama Chemical for USD 1.04 Billion

LANXESS acquires Emerald Kalama Chemical for USD 1.04 Billion

Mumbai (Maharashtra) [India], August 06: Specialty chemicals company LANXESS completed the second-largest acquisition in its history on August 3 with the takeover of Emerald Kalama Chemical. The US-based specialty chemicals manufacturer was majority-owned by affiliates of private equity firm American Securities LLC. All required regulatory approvals have been received. The enterprise value of Emerald Kalama Chemical was USD 1.075 billion (EUR 900 million). After deducting liabilities, the purchase price was approximately USD 1.04 billion (EUR 870 million), which LANXESS financed from existing liquidity.

“Emerald Kalama Chemical gives us another major boost on our growth path. The new businesses are an optimal strategic fit for us. We are strengthening our position in markets with attractive growth rates and opening up new high-margin application areas, especially in the beverage and food sector or in cleaning and cosmetic products. What’s more, Emerald Kalama Chemical is perfectly backward integrated – strengthening our value chain in Consumer Protection. This segment is thus an important engine on the way to making LANXESS even more stable and profitable,” said Matthias Zachert, Chairman of the Board of Management of LANXESS AG.

“A strong team is now working at full speed to ensure a rapid integration.”

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).

In 2020, Emerald Kalama Chemical achieved global sales of approximately USD 425 million (EUR 375 million) and EBITDA pre exceptionals of around USD 90 million (EUR 80 million). Within three years, 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.

Emerald Kalama Site in Kalama, USA

Expansion of the product portfolio for the consumer care sector

Around three-quarters of the sales of the acquired businesses are attributable to specialty products for the consumer care market.

The acquisition makes LANXESS one of the leading providers of products for flavors and fragrances – an area in which the specialty chemicals company expects to see sustained strong growth rates. The substances are used primarily in personal care products, cosmetics, and exclusive fragrances, as well as food and beverages. The product range in the new LANXESS portfolio includes more than 30 aroma chemicals that provide earthy, floral, fruity, spicy, and herbal notes.

LANXESS is incorporating this business into the newly established Flavors & Fragrances business unit, which will become part of the Consumer Protection segment.

The acquisition also strengthens LANXESS’ leading position in the preservatives business. The new products will be used in high-growth applications in the food and beverage industry as well as in detergents, fabric softeners, cosmetics, and personal care products.

Specialty chemicals for industrial applications

Around a quarter of the sales of the acquired businesses are accounted for by specialty chemicals for high-growth industrial applications, primarily in the plastics, paints and coatings, and adhesives industries. The products will be integrated into the Polymer Additives business unit.

22 thoughts on “LANXESS acquires Emerald Kalama Chemical for USD 1.04 Billion

  1. Thanks for this excellent article. One other thing is that the majority of digital cameras are available equipped with some sort of zoom lens that enables more or less of the scene to become included by way of ‘zooming’ in and out. These kind of changes in concentration length usually are reflected inside viewfinder and on significant display screen at the back of the particular camera.

  2. Thanks , I’ve recently been searching for information approximately this subject for a long time and yours is the greatest I’ve discovered till now. But, what about the bottom line? Are you certain in regards to the supply?

  3. Thank you for another great post. Where else could anybody get that type of information in such a perfect way of writing? I have a presentation next week, and I’m on the look for such information.

  4. Thanks for your posting on this blog. From my personal experience, many times softening upwards a photograph may well provide the digital photographer with a chunk of an inventive flare. Often times however, the soft clouds isn’t precisely what you had as the primary goal and can in many cases spoil an otherwise good picture, especially if you anticipate enlarging that.

  5. I’m really enjoying the design and layout of your website.It’s a very easy on the eyes which makes it much more pleasant for me to comehere and visit more often. Did you hire out a designer to create your theme?Superb work!

  6. Hey there just wanted to give you a quick heads up and let you know a few of the images aren’t loading correctly. I’m not sure why but I think its a linking issue. I’ve tried it in two different browsers and both show the same outcome.

  7. Thanks for your post. One other thing is that individual states in the United states of america have their unique laws that will affect home owners, which makes it very hard for the our elected representatives to come up with a fresh set of guidelines concerning property foreclosures on homeowners. The problem is that a state offers own legal guidelines which may interact in an unfavorable manner when it comes to foreclosure guidelines.

  8. I just couldn’t depart your website before suggesting that I actually enjoyed the standard info a person provide for your visitors? Is gonna be back often in order to check up on new posts

  9. Appreciating the persistence you put into your site
    and in depth information you present. It’s nice to come across a blog every once in a while that isn’t the same old rehashed material.

    Great read! I’ve bookmarked your site and I’m adding your RSS feeds to
    my Google account.

  10. Hi there! This article could not be written any better! Looking through this post reminds me of my previous roommate! He always kept preaching about this. I’ll forward this article to him. Pretty sure he’s going to have a good read. I appreciate you for sharing!

  11. I do not even know how I ended up here, but I thought
    this post was great. I do not know who you are but definitely you’re going to a famous
    blogger if you are not already 😉 Cheers!

  12. Having read this I thought it was extremely informative.
    I appreciate you taking the time and effort to put this short article together.
    I once again find myself personally spending way too much time
    both reading and commenting. But so what, it was still worth it!

  13. Hey there! I know this is sort of off-topic however I needed
    to ask. Does managing a well-established blog such
    as yours require a massive amount work? I am brand new to operating a blog but
    I do write in my diary on a daily basis. I’d like to start a blog so I can easily share my
    own experience and views online. Please let me know if you have any recommendations or tips for brand new aspiring bloggers.
    Thankyou!

  14. It is really a great and helpful piece of information. I’m glad that you
    shared this helpful info with us. Please stay us informed like this.
    Thank you for sharing.

Leave a Reply

Your email address will not be published.