Created with Sketch.

25. Aug 2021 | Markets & Companies

Lanxess to acquire IFFs microbial control business

Lanxess aims to become one of the world's largest suppliers of antimicrobial protection products by acquiring IFF's Microbial Control business. Lanxess will pay around USD 1.3 billion (EUR 1.1 billion) for the acquisition.
Lanxess expects the transaction to be completed in the second quarter of 2022.
Image source: ccfb - Pixabay (symbol image).

The specialty chemicals company Lanxess intends to take over the microbial control business of the U.S. group International Flavors & Fragrances Inc. (IFF). Both companies signed a corresponding agreement on August 23, 2021. IFF Microbial Control is one of the leading suppliers of antimicrobial active ingredients and formulations for material protection, preservatives and disinfectants. The products are used in a wide range of applications, particularly in paints and coatings, personal care and household products as well as industrial water treatment.

The transaction is still subject to approval by the relevant antitrust authorities. In addition, the business must first be carved out from the IFF Group. Lanxess expects the transaction to be completed in the second quarter of 2022. Within four years after the closing of the transaction, Lanxess expects synergies to add approximately USD 35 million (EUR 30 million) in EBITDA.

Bridge financing

Lanxess will pay around USD 1.3 billion (EUR 1.1 billion) for the acquisition. The Group will finance the purchase price with debt capital and has secured respective bridge financing for this purpose.

IFF Microbial Control employs around 270 people and operates two production facilities at its U.S. sites in St. Charles, Louisiana, and Institute, West Virginia. The business also maintains a large partner network with active ingredient manufacturers and formulators. Following completion of the acquisition, the business is to be integrated into Lanxess’ Material Protection Products business unit.

European Coatings Journal

Subscriptions

European Coatings Journal

European Coatings Journal is Europe’s leading monthly journal for the coatings industry:

  • Trendsetting industry news
  • Cutting-edge technical papers
  • Exclusive market insight

Manufacturers and suppliers, associations and institutes use European Coatings Journal as their preferred source of information for the professional, more practical aspects of technology.

This could also be interesting for you!

0 Comments

You are currently not logged in

To leave a comment, please log in.

Login
For continuously improving and optimizing our websites, we use cookies. By using our website, you agree to the usage of cookies. For more information, please visit our Privacy policy.
Accept