- LANXESS signed a binding agreement to acquire 100% of Emerald Kalama Chemical for USD 1.04 billion.
- The transaction is expected to be completed in the second half of 2021, pending regulatory approval.
- Emerald Kalama Chemical achieved sales of around USD 425 million and EBITDA of approximately USD 90 million in 2020.
- LANXESS expects an additional annual EBITDA contribution of around USD 30 million from synergy effects within three years.
Acquisition Details
LANXESS has signed a binding agreement to acquire 100% of Emerald Kalama Chemical for USD 1.04 billion, financed from existing liquidity. The transaction is expected to close in the second half of 2021, pending regulatory approval.
Financial Performance
In 2020, Emerald Kalama Chemical reported sales of approximately USD 425 million and an EBITDA pre exceptionals of around USD 90 million. LANXESS anticipates an additional annual EBITDA contribution of about USD 30 million from synergy effects within three years post-acquisition.
Strategic Fit
Emerald Kalama Chemical specializes in consumer segment chemicals, including preservatives for food, household, and cosmetic applications, as well as flavors, fragrances, and animal nutrition products. The acquisition will enhance LANXESS's Consumer Protection segment and expand its presence in North America.
Operational Footprint
Emerald Kalama Chemical employs around 500 people globally and operates production sites in Kalama, Washington (USA), Rotterdam (Netherlands), and Widnes (Great Britain). The company generates about 45% of its turnover in North America and has a streamlined production setup across its three sites.
