Today, August 3, specialty chemicals company LANXESS completed the acquisition of Emerald Kalama Chemical. The U.S.-based company is a world-leading manufacturer of specialty chemicals. LANXESS signed a purchase agreement on February 14, 2021. All required regulatory approvals have been received. LANXESS financed the purchase price of around USD 1.04 billion (EUR 870 million) from liquid funds.
In 2020, Emerald Kalama Chemical generated global sales of around USD 425 million (EUR 375 million) and EBITDA pre-exceptionals of around USD 90 million (EUR 80 million). Seventy-five percent of sales were attributable to business with specialty products for the consumer care market, especially products for flavors and fragrances, as well as preservatives for use in food, household products and cosmetics. One quarter of sales originated from business with specialty chemicals for industrial applications. With the closing of the transaction, LANXESS grows by around 470 employees and the three production sites in Kalama/Washington (USA), Rotterdam (Netherlands) and Widnes (Great Britain).
Acquisition strengthens portfolio for the plastics, paints and coatings as well as adhesives industries
The second-biggest acquisition in LANXESS’s history sees the company expanding its range of specialty chemicals for industrial applications, especially for the plastics, paints and coatings as well as adhesives industries.
One important addition to the new LANXESS portfolio is the K-Flex range of non-phthalate plasticizers and coalescents for adhesives, coatings, sealants and vinyl applications. K-Flex plasticizers optimize production processes and end product properties. They are highly compatible with polar polymers in water-based adhesive systems and improve film formation in paints and coatings. During the manufacture of PVC articles, the rapid-gelling dibenzoates can help to speed up processing.
“The new products broaden the existing LANXESS range and offers growth opportunities in the area of non-phthalate plasticizers which meet the most modern requirements of the plastics processing industry,” underlines Dr. Thomas Facklam, Head of Global Application Technology in the Polymer Additives business unit.
Other important additions to the overall portfolio for industrial applications include Kalama Vitroflex plasticizers for the manufacture of polysulfide sealants and Modulast modifiers, which were developed for use in reactive polyurethane systems.
Last but not least, benzoic acid, benzaldehyde and benzoate salts supplements the LANXESS offer in future. These are used as intermediates, building blocks and additives in a number of industrial applications, e.g. for the production of esters, alkyd resins or corrosion inhibitiors.
Euro figures based on exchange rate EUR/USD = 1.14 (average rate in 2020). The purchase price was converted using current exchange rate EUR/USD = 1.19.
Photo: LANXESS takes over Emerald Kalama Chemical with around 470 employees and three production sites. Here: Kalama/Washington, USA
LANXESS is a leading specialty chemicals company with sales of EUR 6.1 billion in 2020. The company currently has about 14,800 employees in 33 countries. The core business of LANXESS is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. LANXESS is listed in the leading sustainability indices Dow Jones Sustainability Index (DJSI World and Europe) and FTSE4Good.
Detailed information about the company’s products can be found at www.lanxess.com.