- Mergers & Acquisitions
LANXESS now one of world’s largest suppliers of biocides
German specialty chemicals company LANXESS is now one of the world’s largest suppliers of microbial control and biocidal products, after completing the acquisition of the microbial control business unit of the U.S. group International Flavors & Fragrances Inc. (IFF).
LANXESS paid a preliminary purchase price of approximately USD1.3 billion for the acquisition.
“With this acquisition we receive another major boost for our Consumer Protection segment. It will soon become our strongest segment and is thus an important engine on the way to make LANXESS even more stable and profitable,” said Matthias Zachert, chairman of the Board of Management of LANXESS AG. “We are pleased to have more than 250 highly qualified new employees and are now focusing all our efforts on rapidly integrating the newly acquired business.”
With the closing of the transaction, LANXESS adds two production sites to its network in St. Charles, Louisiana, and Institute, West Virginia, both in the United States. The new business will be integrated into the Material Protection Products business unit of LANXESS.
“By combining LANXESS’ and the acquired businesses, we are now building a strong and broad product and technology platform for microbial control and biocides, from active ingredients to powerful formulations. This enables us to offer our customers additional application-oriented solutions and to strengthen our value chain,” said Michael Schaefer, head of the Material Protection Products business unit. “The microbial control business also gives us access to new technologies and enhances our regulatory position through additional registrations.”
A diversified portfolio
The acquisition brings strategic biocidal active substances, a large registration package and strong brands which are a perfect fit for the LANXESS microbial control portfolio.
LANXESS is also strengthening its position as a global leader in the field of industrial preservation and one of the largest suppliers for isothiazolinone-based preservatives. LANXESS’ Preventol products combined with newly acquired Kathon, Bioban and Rocima brands form one of the broadest portfolios for paints and coatings, construction materials, wood preservation, leather and plastics for both wet- and dry-state preservation.