The acquisition of the American group is the second largest in the company’s history.
German Specialty Chemicals Company LANXESS Acquired a business unit of the American perfume and flavors company IFF for about 1.3 billion dollars (1.1 billion euros). “2021 is all about growth. The acquisition of IFF Microbial Control is already the fourth acquisition this year and the second largest by LANXESS Not at all, CEO Matthias Zuckert said on Tuesday.
The company was recently on a shopping spree and only announced in the spring that it would be acquiring US company Emerald Kalama for a good $1 billion – the second largest in the company’s history to date. The purchase of US company Chemtura in 2017 for €2.4 billion was the largest acquisition LANXESS.
Lanxess Strengthens Specialty Chemicals Portfolio
Fortified with IFF Microbial Control, one of the leading suppliers of antimicrobial agents and formulations LANXESS Its portfolio of specialty chemicals in the areas of disinfection, personal care and material protection. According to its own assessment, the chemical company will thus become one of the largest suppliers of antimicrobial protective products in the world. With the acquisition, Zachert the company is also focusing more on consumer protection, which will be the strongest segment in the future LANXESS he is.
A $1.3 billion bridge financing was agreed, which would then be redeemed through corporate bonds. The stock return program is currently suspended from LANXESS Zachert does not want to continue in light of his recent acquisitions. The deal is expected to expire in the second quarter of 2022, as it has not yet been approved by the relevant antitrust authorities and the business has not yet been separated from the IFF. LANXESSShares are up nearly 1% in early trade.
Microbial Control has two production sites in the USA with approximately 270 employees worldwide. The division recently generated annual sales of approximately $450 million with an Editda operating profit of approximately $100 million. About 75 percent of sales are generated in America and Asia. Within four years, Zachert expects the acquisition to generate approximately $35 million in additional profits through savings.
Reuters had reported this earlier LANXESS He has IFF job opportunities. Lonza Specialty Ingredients (LSI), which belongs to financial investors Bain and Cinven, was also in competition. Microbial Control was originally part of the US chemical company Dow, but fell to DuPont after the merger and subsequent split of the group. The new owner, in turn, merged the Department of Nutrition and Biological Sciences two years ago with IFF, known for its fragrances and flavors.
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