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SINGAPORE (ICIS) – German specialty chemicals producer LANXESS will acquire US company Emerald Kalama Chemical for a total purchase price of $ 1.04 billion, “after deducting debt-like items.”
The acquisition is expected to be finalized in the second half of 2021, pending regulatory approvals.
LANXESS plans to finance the acquisition from existing cash.
Emerald Kalama Chemical, a specialty chemicals manufacturer whose strength lies in the consumer segment, employs approximately 500 people worldwide and has production sites in Kalama, Washington (US); Rotterdam (Netherlands); and Widnes (United Kingdom). It has an enterprise value of $ 1.075 billion.
The American company generates approximately 45% of its turnover in North America. The company had revenues of approximately $ 425 million in 2020 and earnings of approximately $ 90 million before interest, taxes, depreciation and amortization (EBITDA).
“We are regaining momentum on our growth path. Emerald Kalama Chemical’s business is ideal for us, ”LANXESS President Matthias Zachert said in a statement on February 14th.
“We will further strengthen our consumer protection segment and open up new application areas with high margins, for example in the food industry and the animal health sector,” he said.
“In addition, we will also expand our presence in our growth region in North America,” added Zachert.
Zachert plans to integrate Emerald Kalama’s activities into LANXESS “very quickly”.
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