Lanxess Underpins its BRIC Strategy with Two Acquisitions

Lanxess is currently in the process of acquiring two new companies in Asia. And while, admittedly, these new acquisitions will not deal directly with the firm’s tyre industry chemical supply business, Lanxess says the purchase “is underpinning its long-term growth strategy in the BRIC countries.” The companies to be acquired by Lanxess are India’s Gwalior Chemical Industries Ltd, which comes with an 82.4 million euro price tag, and Chinese company Jiangsu Polyols Chemical Co Ltd, which is to be acquired for an undisclosed sum.

“These acquisitions in India and China are further milestones in our company’s long-term growth strategy in the BRIC countries,” said Axel C. Heitmann, chairman of Lanxess’s Board of Management. “Gwalior’s business complements the portfolio of our Basic Chemicals business unit and our first acquisition in India will strengthen our production base in this exciting market.”

Gwalior is one of the largest Indian producers of benzyl products and one of the leading global producers of sulphur chlorides for the agrochemicals and pharmaceuticals as well as for the flavour and fragrance industries. “We are delighted to have reached this landmark transaction. We are convinced that the business as well as employees will go from strength to strength under the new management of Lanxess,” said Ashwin Kothari, chairman of Gwalior Chemical Industries.

Jiangsu Polyols mainly produces trimethylolpropane (TMP) that is used in lubricants, paints, and coatings. Lanxess’s Basic Chemicals business unit is already a major TMP supplier in China and will integrate Jiangsu into its global operations.

“We have always stated in the past that we are on the look out for small or medium-sized assets that will create value for Lanxess and are a strategic fit for our portfolio,” added Heitmann. “These two transactions follow on from our successful acquisition of Petroflex, one of the leading Latin American synthetic rubber producers.”