$1.04 Billion: LANXESS Signs Contract to Acquire Emerald Kalama Chemical

- Advertisement -

The enterprise value of Emerald Kalama Chemical amounts to $1.075 billion. After deducting debt-like items, the purchase price is around $1.04 billion (EUR 867 million), which LANXESS will finance from existing liquidity

Specialty chemicals company LANXESS has signed a binding agreement to acquire 100 per cent shares in Emerald Kalama Chemical on 15 February 2021. The US-based company is a globally leading manufacturer of specialty chemicals, especially for the consumer segment, and is majority-owned by affiliates of the US private equity firm American Securities LLC.

“We are gaining further momentum on our growth course. The businesses of Emerald Kalama Chemical are an ideal fit for us. We will further strengthen our Consumer Protection segment and open up new application areas with strong margins, for example in the food industry and animal health sector. In addition, we will also enlarge our presence in our growth region of North America. All this will make us even more profitable and stable,” said Matthias Zachert, Chairman of the Board of Management of LANXESS AG.

- Advertisement -

The enterprise value of Emerald Kalama Chemical amounts to $1.075 billion. After deducting debt-like items, the purchase price is around $1.04 billion (EUR 867 million), which LANXESS will finance from existing liquidity. The transaction is expected to be completed in the second half of 2021. It is still subject to approval by the relevant authorities.

In 2020, Emerald Kalama Chemical achieved sales of around USD 425 million and EBITDA pre exceptionals of approximately $90 million. Within three years following the completion of the transaction, LANXESS expects an additional annual EBITDA contribution of around $30 million (EUR 25 million) from synergy effects. The acquisition will already be earnings per share accretive in the first fiscal year after its completion.

Emerald Kalama Chemical employs approximately 500 employees worldwide and runs production sites in Kalama, Washington (USA), Rotterdam (Netherlands) and Widnes (Great Britain). Emerald Kalama Chemical generates around 45 percent of its turnover in North America. “

Emerald Kalama Chemical has a very efficient setup, bundling all its production activities at only three sites. That is why we expect to integrate the new business very quickly,” said Zachert.

Emerald Kalama Chemical generates about 75 percent of its turnover with specialties in the consumer segment. These include preservatives for food, household and cosmetic applications, flavors and fragrances as well as products for animal nutrition. The remaining 25 percent of sales come from the specialty chemicals business for industrial applications, including the plastics and adhesives industries.

- Advertisement -

Most Popular Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

Global Cellular IoT Module Market Trends Upward

0
A report by Counterpoint said that the growing trends in the market are being driven by increasing demand in China and India.  The global market...

Global Consumer Electronics Market To Hit $1.07T in 2025

0
The Stocklytics report predicts that despite a considerable drop in the worldwide consumer electronics market this year, it will see a modest recovery with...

North American EMS Industry Grows By 5%

0
IPC reported its May 2024 findings on the industry growth compared to last month and last year. On Friday, the global association for electronics manufacturing...

Buzz

Element14 Expands Product Range With Advanced Components From Phoenix Contact

0
The components, such as Connexis PCB Connectors, XPC PushX PCB Connectors, XT & XTV PushX Terminal Blocks, OCS Outdoor Housings, STEP3 Power Supplies, and...

Hisense Appoints Pankaj Rana As Group CEO To Lead India Operations

0
With over two decades of experience in the consumer electronics segment, as the new Group CEO, Rana will be leading the expansion strategy of...

ByteDance Partners With Broadcom To Develop Advanced Chips

0
ByteDance, the Chinese parent company of TikTok, is collaborating with U.S.-based chip designer Broadcom to develop an advanced AI processor, according to sources familiar...

Important Sectors

Global Cellular IoT Module Market Trends Upward

0
A report by Counterpoint said that the growing trends in the market are being driven by increasing demand in China and India.  The global market...

ByteDance Partners With Broadcom To Develop Advanced Chips

0
ByteDance, the Chinese parent company of TikTok, is collaborating with U.S.-based chip designer Broadcom to develop an advanced AI processor, according to sources familiar...

BIS Introduce New Standards To Enhance EV Safety

0
BIS introduces new standards, IS 18590: 2024 and IS 18606: 2024, to enhance EV safety and performance. These standards focus on powertrain and battery...

Government Scheme Greenlights Rs 13,595 Crore RE Projects

0
The new ISTS schemes will facilitate renewable energy transmission from two Indian states. On Saturday, the central government announced that it has approved new Inter...

BII To Invest $300 Million In Indian EVs

0
BII plans to invest an additional $300 million in India's electric vehicle (EV) industry over the next three years, focusing on manufacturing, components, and...

Manufacturing

HZL, AEsir Technologies Partner For Developing Zinc Batteries

0
This collaboration delivers higher power at lower costs, with minimal maintenance and longer lifespans of up to 20 years, contributing to greener solutions with...

North American EMS Industry Grows By 5%

0
IPC reported its May 2024 findings on the industry growth compared to last month and last year. On Friday, the global association for electronics manufacturing...

Deadstock Or Forgotten Treasure?

0
In a world where technology is advancing at a breakneck speed, are the deadstock electronics components in your warehouse on the verge of becoming...

Honeywell Creates AI Software For Gigafactory Efficiency

0
Honeywell anticipates that its new battery manufacturing excellence platform will lower the costs of cell production, speed up the ramp-up cycles, and decrease material...

Raju B Ketkale Named CEO Of Lumax Industries

0
He takes over from Vishnu Johri, who is stepping down for personal reasons. Lumax Industries Limited, a Tier-1 automotive lighting system and component manufacturer within...