 "Lanxess' HQ in Cologne")
German specialty chemicals company Lanxess is expanding its portfolio of material protection products by taking over the US-based Chemours’ clean and disinfect business – comprising disinfectants, Oxone and chlorine dioxide business lines – for $230 million in cash. The business comprises active ingredients as well as specialty chemicals used especially in disinfectant and hygiene solutions. One of its core products is the Virkon S branded disinfectant, that is being deployed globally in the growth sector of veterinary disinfection and in the combat against major diseases such as Foot-and-Mouth disease or Avian Influenza.
The deal is Lanxess’ first acquisition after the completion of its realignment program. “We plan to enhance our position particularly in mid-sized, less cyclical markets with high margins and sound growth prospects. We have made quick headway and are now expanding our specialty chemicals portfolio which will make us more profitable and more resilient,” said Matthias Zachert, chairman of the board of management of Lanxess AG.
Lanxess takes over Chemours’ clean and disinfect business with 170 employees worldwide and three production sites in Memphis and North Kingstown, USA, and Sudbury, UK. In 2015, the business achieved sales of around Euro 100 million, roughly half of which in the region of North America. “Through the acquisition, we will grow especially in the region of North America, where we still see good opportunities,” said Zachert.
The new business will be integrated into Lanxess’ material protection products business unit, which operates production sites in Krefeld-Uerdingen and Dormagen (Germany), Pittsburgh (USA), Jhagadia (India), Changzhou (China) and Singapore. It is part of the performance chemicals segment, which generated sales of roughly Euro 2.1 billion in 2015.
