Lanxess signs contract to acquire Emerald Kalama Chemical
The US-based company is a globally leading manufacturer of specialty chemicals, especially for the consumer segment, and is majority-owned by affiliates of the US private equity firm American Securities LLC.
The enterprise value of Emerald Kalama Chemical amounts to USD 1.075 billion. After deducting debt-like items, the purchase price is around USD 1.04 billion (EUR 867 million), which Lanxess wants to finance from existing liquidity. The transaction is expected to be completed in the second half of 2021. It is still subject to approval by the relevant authorities. In 2020, Emerald Kalama Chemical achieved sales of around USD 425 million (EUR 351 milion) and EBITDA pre exceptionals of approximately USD 90 million (EUR 74 million). Within three years following the completion of the transaction, Lanxess expects an additional annual EBITDA contribution of around USD 30 million (EUR 25 million) from synergy effects. The acquisition will already be earnings per share accretive in the first fiscal year after its completion.
Emerald Kalama Chemical employs approximately 500 employees worldwide and runs production sites in Kalama, Washington (USA), Rotterdam (Netherlands) and Widnes (Great Britain). Emerald Kalama Chemical generates around 45 percent of its turnover in North America.
75 percent of the turnover are generated with specialties in the consumer segment. These include preservatives for food, household and cosmetic applications, flavors and fragrances as well as products for animal nutrition. The remaining 25 percent of sales come from the specialty chemicals business for industrial applications, including the plastics and adhesives industries.