Lanxess completes sale of membrane business
German specialty chemicals company Lanxess based in Cologne announced that it has completed the sale of its reverse osmosis (RO) membrane business. The business was acquired by French group Suez, a world leader in sustainable resource management.
The sales agreement was signed on July 15, 2020. The membrane business no longer fits in with Lanxess’ strategic focus on specialty chemicals, the company said at that time. In 2019, the business generated sales in the low double-digit million euro range for Lanxess.
The purchase price was not disclosed.
With this acquisition, Suez integrates a new complementary RO membranes technology. This acquisition will enable the Group to expand both its offer and its production capacity and reinforce its growth in line with the “Shaping Suez 2030” strategic plan.
Lanxess’ RO product line’s acquisition includes the RO membranes product line and the production facility located in Bitterfeld, Germany. The completion of this transaction expands Suez’s international capacities and expertise in producing RO membranes; This will further enable the Group to meet the growing need for brackish water membranes.
As of January 1, 2021, the production plant as well as the research facilities in Bitterfeld, Germany, including all employees have been transferred to Suez.
“We welcome this acquisition, which follows the deployment of our “Shaping Suez 2030” strategic plan. In line with our strategy of growth in industrial markets and investments in high value-added activities, we are strengthening our reverse osmosis membrane offer in order to pursue our international development in the fast-growing industrial water market.” said Bertrand Camus, chief executive officer, Suez.
Lanxess is a leading specialty chemicals company with sales of EUR6.8 billion (USD8.3 billion) in 2019. The company currently has about 14,400 employees in 33 countries. The core business of Lanxess is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics.
With an active presence on five continents, Suez and its 90,000 employees provide innovative and resilient solutions in water management, waste recovery, site remediation and air treatment, optimizing municipalities’ and industries’ resource management through “smart” cities and improving their environmental and economic performance. By 2030, the Group is targeting 100% sustainable solutions, with a positive impact on our environment, health and climate. Suez generated total revenues of EUR18.0 billion (USD22 billion) in 2019.