On February 14, the German specialty chemicals manufacturer Lanxess announced the signing of an agreement to acquire Emerald Kalama Chemical, a US counterpart. The transaction still requires approval from the relevant authorities and is expected to be completed in the second half of 2021.
The corporate value of Emerald Kalama is US$1.075 billion. After deducting debt and other items, the purchase price is approximately US$1.04 billion (867 million euros, or approximately RMB 6.7 billion).
Emerald Kalama has approximately 500 employees and three production plants worldwide, with revenue of approximately US$425 million in 2020. LANXESS expects that within three years after the completion of the transaction, the synergies will bring an additional contribution of approximately US$30 million per year to EBITDA.
75% of Emerald Kalama's total turnover comes from the consumer sector, including preservatives, fragrances and flavors for food, household and cosmetics, and products for animal nutrition. The remaining 25% of sales come from the specialty chemicals business for industrial use, including the plastics and adhesive industries.
LANXESS said that through this acquisition, it will expand its product portfolio in a targeted manner: the company has a leading position in the global business of antibacterial active ingredients and preservatives (including consumer protection products and animal health), such as Effective disinfectant against coronavirus or African swine fever.
