Lanxess to buy Chemtura

On 29 September Lanxess announced plans to acquire US-based Chemtura Corporation, one of the major global providers of flame retardant and lubricant additives.

Under the terms of the two parties’ agreement, Chemtura shareholders will receive US$33.50 per share in cash for each outstanding share of common stock held, which represents an 18.9 per cent premium to the stock’s closing share price of $28.18 on 23 September 2016. The 2.4 billion euro transaction will be financed by Lanxess mainly through senior and hybrid bonds and is expected to close around mid-2017.

Headquartered in Philadelphia, Pennsylvania, Chemtura has 20 sites in 11 countries and approximately 2,500 employees worldwide. The company reported sales of around 1.5 billion euros in the last four quarters, with EBITDA of approximately 245 million euros (EBITDA margin of approx. 16 per cent). Approximately 45 per cent of Chemtura’s revenue is generated in North America.

“With this acquisition, we are forming a champion in the field of additives and are strengthening our already profitable portfolio,” said Matthias Zachert, chairman of the Board of Management of Lanxess AG. “Through the acquisition, we are further implementing our strategy to become a more resilient and profitable chemical company. We are significantly building on our competitive positioning in medium-sized markets and increasing our presence in North America. Lanxess is taking a next and major step forward on its growth path.”