NEWS
Lanxess to acquire IFF Microbial Control
Lanxess has signed a corresponding agreement to acquire the microbial control business of IFF for $ 1.3 billion or 9.6 x EBITDA . The deal should be completed in Q2 2022 , following a carve-out process and subject to regulatory approvals . This is the firm ’ s second largest ever buy , just ahead of the recently completed acquisition of Emerald Kalama . “ The business fits ideally into our strategic direction – speciality chemicals with attractive margins , applications in a wide range of industries and with a global positioning ,’ commented Matthias Zachert , chairman of the board of management . “ It will make Lanxess one of the world ’ s largest suppliers of microbial control products .” IFF Microbial Control employs 270 , operates two sites in the US and had sales of about $ 440 million / year and EBITDA of about $ 85 million in 2021 , selling antimicrobial active ingredients and formulations for material protection , preservatives and disinfectants . Its main markets are personal care , household products , industrial water treatment , paint and coatings , building materials and animal biosecurity . Following completion , the business will be integrated into Lanxess ’ Material Protection Products business unit . The buy is financed by debt capital and Lanxess has secured bridge financing for this . It expects synergies to add some $ 35 million in EBITDA and for the buy to be earnings-accretive in the first fiscal year after closing . As a direct result , it has also cancelled its ongoing share buyback programme . A few weeks previously , Lanxess had completed the € 870 million acquisition of Emerald Kalama Chemical . Among many other things , this will give the company a new presence in aroma chemicals , for which it will create a new Flavours & Fragrances ( F & F ) business unit , led by Holger Hüppeler . About 75 % of Emerald Kalama ’ s sales of € 375 million last year were in speciality products for the consumer care market , especially F & F . Some 30 new aroma chemicals of all kinds came with the deal , which also brought preservatives for multiple applications , such as the Kalama , Purox and Kalaguard brands of aldehydes and benzoates .
Zachert – Acquisition fits in with Lanxess ’ strategic direction
Change of owner at Seqens ?
Eurazeo has announced that it has entered into exclusive discussions to sell its stake in French-based CDMO Seqens to funds advised by SK Capital Partners and its existing French shareholders , Mérieux Equity Partners . Seqens commented that SK Capital ’ s involvement could enhance its position in the production of APIs , pharmaceutical intermediates and speciality ingredients . SK has already owned API manufacturer Wavelength Pharmaceuticals since 2017 . Formerly known as PCAS , Seqens was taken over by Eurazeo and its partners in June 2016 . Since then , it has grown by acquisition and investment into a global player , with about 3,000 employees at 19 industrial sites and seven R & D centres , turning over about € 1 billion / year . The deal would close by the end of 2021 , subject to standard conditions . Nov Santé Actions Non Cotées , the fund launched at the initiative of the French Insurance Federation and Caisse des Dépôts as part of their sustainable recovery investment programme for France , would also invest in Seqens .
6 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981