NetComposites Ltd has transferred the rights and ownership of this website to Gardner Business Media Inc.
On 1st January 2020, NetComposites' media assets including netcomposites.com, newsletters and conferences were transferred to Composites World (Gardner Business Media).
This site is no longer being updated. Please direct all enquiries to email@example.com.
For further details see our joint press release.
LANXESS has completed the acquisition of US company Chemtura, a leading supplier of flame retardant and lubricant additives. All required regulatory authorities have cleared the transaction.
With a total enterprise value of €2.4 billion, Chemtura is the largest acquisition in LANXESS’ history. The company reports that this acquisition significantly expands its additives portfolio and makes it one of the world’s leading players in this growth field. Chemtura’s urethanes and organometallics businesses will also be integrated into the LANXESS portfolio.
LANXESS, headquartered in Cologne, Germany, will absorb some 2,500 Chemtura employees at 20 sites in 11 countries worldwide. The former Chemtura businesses generate annual sales of approximately €1.5 billion.
“The acquisition of Chemtura is another major step in our realignment process and a significant milestone in our course of growth,” states Matthias Zachert, Chairman of the Board of Management of LANXESS. “The ‘new’ LANXESS is increasingly taking shape. The expansion of the additives business gives LANXESS an additional strong pillar. In its new set-up and with an even more balanced portfolio, the company will be much more stable and profitable. At the same time, Chemtura considerably strengthens our presence in the North American growth region.”
Through the acquisition LANXESS increases its footprint in North America, where the company is now represented at 24 production sites (previously 12) and employs approximately 2,800 staff (previously 1,500). The region’s share in global sales increases from approximately 17% to approximately 21%.
The expected annual synergy effects from the transaction amount to approximately €100 million with realisation targeted until 2020. The acquisition of Chemtura is already expected to be accretive to LANXESS’s earnings per share in the first full fiscal year after closing.
Effective immediately, LANXESS will combine its entire additives business within the new Speciality Additives segment. This segment is an additional pillar in the LANXESS group, with annual sales of approximately €2 billion and some 2,900 employees worldwide. The segment comprises the new Additives and Rhein Chemie business units. The combined business with flame retardant and lubricant additives is anchored in the Additives business unit. The Rhein Chemie business unit comprises the existing rubber and colour additives businesses of LANXESS.
LANXESS is significantly strengthening its competitive position in the area of lubricant additives and synthetic lubricants for industrial applications. The company expects medium-term growth of 3-4% annually for the industrial lubricant additives market, driven primarily by steadily increasing demands placed on lubricants as regards performance capability and environmental compatibility.
LANXESS says it is also significantly expanding its market position for flame retardant additives and now also operates the former Chemtura businesses with brominated flame retardant additives, bromine and bromine derivatives. These substances are used among others in the construction industry and are an ideal complement for the existing LANXESS business with phosphorus-based flame retardant additives. The company also expects medium-term annual growth rates of 3-4% percent for the area of flame retardant additives.
For more information visit: