The acquisition is with sales of $425 million and EBITDA of $90 million to strengthen Consumer Protection segment
Speciality chemicals company LANXESS has signed a binding agreement to acquire 100 per cent shares in Emerald Kalama Chemical. The US-based company is a globally leading manufacturer of speciality chemicals, especially for the consumer segment, and is majority-owned by affiliates of the US private equity firm American Securities.
The enterprise value of Emerald Kalama Chemical amounts to $1.075 billion. After deducting debt-like items, the purchase price is around $1.04 billion (EUR 867 million*), which LANXESS will finance from existing liquidity. The transaction is expected to be completed in the second half of 2021. It is still subject to approval by the relevant authorities.
In 2020, Emerald Kalama Chemical achieved sales of around $425 million and EBITDA pre exceptionals of approximately $90 million. Within three years following the completion of the transaction, LANXESS expects an additional annual EBITDA contribution of around $30 million (EUR 25 million*) from synergy effects. The acquisition will already be earnings per share accretive in the first fiscal year after its completion.
“We are gaining further momentum on our growth course. The businesses of Emerald Kalama Chemical are an ideal fit for us. We will further strengthen our consumer protection segment and open up new application areas with strong margins, for example in the food industry and animal health sector. In addition, we will also enlarge our presence in our growing region of North America. All this will make us even more profitable and stable,” said Matthias Zachert, Chairman of the Board of Management, LANXESS.
Emerald Kalama Chemical employs approximately 500 employees worldwide and runs production sites in Kalama, Washington (USA), Rotterdam (Netherlands) and Widnes (Great Britain). Emerald Kalama Chemical generates around 45 per cent of its turnover in North America. “Emerald Kalama Chemical has a very efficient setup, bundling all its production activities at only three sites. That is why we expect to integrate the new business very quickly,” said Zachert.