LANXESS completes acquisition of Emerald Kalama Chemical

By OEM Update Editorial August 5, 2021 3:42 pm

Acquisition with approximately USD 425 million in sales and around USD 90 million in EBITDA. 

Specialty chemicals company LANXESS completed the second-largest acquisition in its history recently, 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.

Matthias Zachert, Chairman of the Board of Management of LANXESS AG , “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.” “A strong team is now working at full speed to ensure a rapid integration.”

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