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Acquisition strengthens business in specialty chemicals for industrial applications.
August 4, 2021
By: DAVID SAVASTANO
Editor, Ink World Magazine
LANXESS has completed the acquisition of Emerald Kalama Chemical. LANXESS signed a purchase agreement on February 14, 2021. All required regulatory approvals have been received. LANXESS financed the purchase price of pproximately $1.04 billion from liquid funds. In 2020, Emerald Kalama Chemical generated global sales of around $425 million and EBITDA pre-exceptionals of nearly $90 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). 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. “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,” said 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. 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.
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