German firm strengthens its business in North America
Speciality chemicals company Lanxess has finalised the purchase of the Clean and Disinfect business of US-based chemicals company Chemours.
The firm has paid around €210 million for the business, which includes various active ingredients and speciality chemicals used in disinfection and hygiene systems.
'The acquisition is the first milestone on our path of growth and a further step toward strengthening our business in North America,' said Matthias Zachert, Chairman of the Board of Management of Lanxess.
'The integration of the new business now has absolute priority so we can quickly benefit from this expansion of our speciality chemicals portfolio.'
The acquired business is expected to deliver an annual EBITDA contribution of around €20 million.
Lanxess said this would gradually increase to about €30 million by 2020.
The new business will be merged into Lanxess’ Material Protection Products business unit.
The business has three production sites in Memphis and North Kingstown in the US and Sudbury in the UK. It reported 2015 sales of around €100 million, with about half to the US.
The business comprises three product lines: disinfectants, potassium monopersulfate and chlorine dioxide.