LANXESS Sells Urethane Systems to UBE Corporation
- LANXESS completed the sale of its Urethane Systems business to UBE Corporation on April 1, 2025.
- The transaction was approved by antitrust authorities and announced in October 2024.
- LANXESS received gross cash proceeds of approximately €500 million, with an enterprise value of €460 million.
- Proceeds will be used to redeem a €500 million bond maturing in May 2025, reducing leverage to ~3x.
Transaction Completion
LANXESS has finalized the sale of its Urethane Systems business to UBE Corporation, effective April 1, 2025. UBE, a global chemical manufacturer listed on the Tokyo Stock Exchange, acquired the business following necessary approvals from antitrust authorities. The transaction was initially announced in October 2024.
Financial Details
The sale generated gross cash proceeds of approximately €500 million for LANXESS, with the enterprise value set at €460 million. These funds are earmarked for redeeming a €500 million benchmark bond maturing in May 2025. This financial maneuver is expected to reduce LANXESS's leverage ratio (net financial debt / EBITDA pre) to approximately 3x.
Strategic Implications
This transaction marks the conclusion of LANXESS's portfolio transformation strategy. By divesting its Urethane Systems business, the company aims to streamline its operations and focus on core areas, while also achieving a significant reduction in net financial debt.
Source: Lanxess