CHEMTURA DEAL

Lanxess Joins Shopping Spree

ARCHIV - Der Vorstandsvorsitzende der Lanxess AG, Matthias Zachert, erläutert am 08.05.2014 in Köln (Nordrhein-Westfalen) die Unternehmensbilanz. Der Spezialchemiekonzern Lanxess hat die Kapitalerhöhung von 10 Prozent abgeschlossen und damit 430 Millionen Euro erzielt. Foto: Oliver Berg/dpa (zu dpa Jahreswechselpaket 2014/2015) +++(c) dpa - Bildfunk+++
Lanxess CEO Matthias Zachert is getting closer to his goal of putting the chemicals firm on more stable ground.
  • Why it matters

    Why it matters

    The acquisition of Chemtura is a sign that Lanxess is emerging strong from a failed bid to expand in the synthetic rubber market.

  • Facts

    Facts

    • Lanxess has agreed to purchase U.S. rival Chemtura for €2.4 billion, which is 10 times the Philadelphia-based company’s operating profit.
    • Lanxess anticipates to cut costs by €100 million and boost revenue to €9.3 billion through the deal.
    • Chemtura generated €1.5 billion in sales last year and had an operating profit margin of 16 percent.
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  • Audio

    Audio

  • Pdf

After years of hard times, Lanxess finally has something to celebrate.

The Cologne-based chemicals company, which spun off from Bayer in 2004, has inked a deal to purchase U.S. rival Chemtura for €2.4 billion ($2.7 billion).

It marks the largest acquisition in its history and comes amid a series of acquisitions by German chemical companies of their U.S. rivals, including one-time owner Bayer’s blockbuster purchase of Monsanto and Evonik’s purchase of the specialty chemicals division of Air Products.

It’s a flurry of takeovers that Lanxess boss Matthias Zachert had predicted in an interview with Handelsblatt earlier this year.

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