Lanxess buys Chemtura sooner than expected

Cologne, Germany — Lanxess  completed the acquisition of Chemtura, earlier than expected on 21 April.

The deal, came a step closer in February when Chemtura shareholders signalled their approval. It is the largest acquisition in Lanxess' history with a total enterprise value of about $2.57 bn. The deal also brings Lanxess new areas of business in urethanes.

This will sit in a new Urethane Systems business unit to be led by Markus Eckert. Products include hot-cast prepolymers, special aqueous urethane dispersions and polyester polyols. These components are used primarily in the construction, mining, oil, gas, athletic equipment and electronics industries.

The Urethane Systems unit will join Lanxess' existing High Performance Materials unit to form a new business segment: Engineering Materials.

The transaction gives Lanxess about 2,500 Chemtura employees at 20 sites in 11 countries. The Chemtura businesses generate annual sales of about $1.6 bn. Lanxess projects synergy effects of about $107m to be realised by 2020.

"The acquisition of Chemtura is another major step in our realignment process and a significant milestone in our course of growth," Lanxess ceo Matthias Zachert said in a statement. The goal is to develop a more stable, more profitable business, he added.

Lanxess will combine its new Additives and Rhein Chemie business units into a new Specialty Additives segment, valued at about $2.14 bn with 2,900 global employees.

Finally, Lanxess is integrating Chemtura's organometallics business into its existing Advanced Industrial Intermediates business unit.