 "Lanxess' HQ in Cologne")
German specialty chemicals company Lanxess AG has signed a definitive agreement to acquire the US-based Chemtura Corporation in a transaction valued at approximately $ 2.5 billion.
Under the terms of the agreement, Chemtura shareholders will receive $33.50 per share in cash for each outstanding share of common stock held, which represents an 18.9 percent premium to the stock's closing share price of $28.18 on September 23, 2016. The respective boards of both companies have unanimously approved the transaction.
“For the past year, our management team and Board of Directors have been actively working to identify a transformative opportunity to create value for our shareholders and to enhance the scale, strength and diversity of our business, both vertically and geographically, for the benefit of our customers and employees. The transaction we are announcing today delivers on that promise. It provides premium value to our shareholders and benefits our customers and employees by making Chemtura part of a larger, stronger global enterprise with the resources to fully support a more diverse suite of specialty chemicals products and services,” commented Craig Rogerson, president, chief executive officer and chairman of the board of Chemtura.
Matthias Zachert, chief executive officer and chairman of the board of management of Lanxess, said, “With this acquisition, we are forming a major global player in the field of additives and are significantly strengthening our already profitable portfolio. We are confident that this transaction will create new and exciting opportunities for the customers and employees of both companies. The Chemtura team has built four industrial businesses into a highly attractive group of assets. In addition to the additives segment, Chemtura's urethane and organometallics businesses will further diversify our company's product offering."
Lanxess will fund the transaction through existing liquidity and the issuance of new debt. The transaction is expected to close around mid-2017, subject to approval by the holders of Chemtura's common stock, customary closing conditions and regulatory approvals.
