- Chemtura shareholders will receive USD 33.50 per share, a 18.9% premium, with the transaction valued at approximately EUR 2.4 billion.
- The acquisition is expected to close around mid-2017, pending shareholder and regulatory approvals.
- Chemtura reported sales of around EUR 1.5 billion and EBITDA of approximately EUR 245 million.
- Key products include flame retardant additives, lubricant additives, urethanes, and organometallics.
Acquisition Details
LANXESS plans to acquire US-based Chemtura Corporation for USD 33.50 per share in cash, representing an 18.9% premium to the stock’s closing price on September 23, 2016. The transaction, valued at approximately EUR 2.4 billion, will be financed through senior and hybrid bonds and existing liquidity. The deal is expected to close around mid-2017, pending shareholder and regulatory approvals.
Chemtura Overview
Headquartered in Philadelphia, Chemtura operates 20 sites in 11 countries with around 2,500 employees. The company reported sales of approximately EUR 1.5 billion and an EBITDA of about EUR 245 million over the last four quarters. Chemtura’s revenue is primarily generated in North America, with a portfolio that includes additives, urethanes, and organometallics.
Strategic Fit
The acquisition will enhance LANXESS' additives portfolio, particularly in flame retardant and lubricant additives. Chemtura’s additives business will be integrated with LANXESS’ Rhein Chemie Additives unit to form the new Performance Additives segment. This move is expected to generate annual synergies of around EUR 100 million by 2020.
Product Lines
Chemtura’s lubricant additives and synthetic lubricants serve industrial applications like power generation and aviation. The company also produces brominated flame retardant additives, which are crucial for the construction and electronics industries. Additionally, Chemtura’s urethane business provides components for specialized polyurethanes used in various industries, while its organometallics are used as catalysts in polymer production and fine chemicals synthesis.
