- LANXESS paid EUR 210 million for Chemours' Clean and Disinfect business.
- The acquisition closed on August 31, 2016, with antitrust approval.
- The business includes disinfectants, potassium monopersulfate, and chlorine dioxide.
- Expected annual EBITDA contribution is EUR 20 million, increasing to EUR 30 million by 2020.
Acquisition Details
LANXESS closed the acquisition of Chemours' Clean and Disinfect business on August 31, 2016, after receiving approval from all relevant antitrust authorities. The transaction was valued at around EUR 210 million, financed from existing liquidity.
Financial Impact
The acquisition is expected to be accretive to LANXESS' earnings per share (EPS) in the first fiscal year. The acquired business is projected to contribute an annual EBITDA of approximately EUR 20 million, with synergy effects potentially increasing this to about EUR 30 million by 2020.
Business Integration
The new business will be integrated into LANXESS’ Material Protection Products unit, expanding its active ingredients portfolio and extending the value chain in the veterinary disinfection segment. The acquired business includes three production sites in Memphis and North Kingstown in the United States, and Sudbury in the United Kingdom, with 2015 sales of around EUR 100 million.
Product Lines
The acquisition encompasses three main product lines: disinfectants, potassium monopersulfate, and chlorine dioxide. The disinfectants, marketed under the Virkon S brand, are used in biosecurity applications in the veterinary segment. Potassium monopersulfate, branded as Oxone, is used in pool and spa applications, personal hygiene products, and electronics. Chlorine dioxide is utilized in industrial water treatment applications.
