LANXESS to acquire IFF's microbial control business.
Highlights:
* LANXESS to become one of the world's largest suppliers of microbial control products
* Strengthening the specialty chemicals portfolio: expansion of the growth areas disinfection, personal care and material protection
* Acquisition with approximately
* Attractive synergies: additional EBITDA contribution of around
* Purchase price of around
* Closing of transaction expected in Q2 2022
* Consumer Protection to become the Group's strongest segment
LANXESS intends to take over the microbial control business of the
LANXESS is taking another big step on its growth course: the specialty chemicals company intends to take over the microbial control business of the
The transaction is still subject to approval by the relevant antitrust authorities. In addition, the business must first be carved out from the
The IFF microbial control business represents sales of around
'In 2021, all signs are pointing to growth. The acquisition of IFF Microbial Control is already the fourth this year and LANXESS' second largest ever. The business fits ideally into our strategic direction - specialty chemicals with attractive margins, applications in a wide range of industries and with a global positioning. It will make LANXESS one of the world's largest suppliers of microbial control products. At the same time, we are enhancing Consumer Protection to become the strongest segment in the Group and are once again taking LANXESS a decisive step forward in terms of profitability and stability,' said
LANXESS will pay around
Perfect addition to the material protection business
IFF Microbial Control employs around 270 people and operates two production facilities at its
'Also thanks to acquisitions in recent years, we are already well positioned as microbial control solutions provider. With IFF's microbial control business, we can now expand our portfolio of active ingredients, enabling us to offer our customers additional application-oriented solutions. In addition, we are strengthening our value chain,' said
IFF Microbial Control offers a comprehensive portfolio of innovative and sustainable solutions. The products extend the life and ensure the functionality of end products, for example in paints and coatings, personal care products, detergents and household cleaners. They also preserve water in industrial applications. Hygiene solutions from IFF Microbial Control are also used in functional textiles. They ensure that these remain germ-free for a longer time.
Share buy-back program will not be continued
With its recent acquisitions, LANXESS has created attractive growth opportunities and is now re-prioritizing its capital allocation. Against this background, the currently suspended share buy-back program will not be continued. The approximately 1.1 million shares already purchased will be cancelled.
*Normalized level, i.e. in an average year **Based on exchange rate of EUR/USD = 1.20.
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