LANXESS AG announced it plans to acquire the microbial control business from New York-based International Flavors & Fragrances (IFF) in a deal valued at $1.3 billion.
According to a company press release, LANXESS expects the deal to be completed in the second quarter of 2022 following approval from regulators.
It will be Lanxess’s second-largest acquisition making it one of the largest suppliers of microbial-control products, according to Matthias Zachert, chairman of Lanxess.
“The business fits ideally into our strategic direction – specialty chemicals with attractive margins, applications in a wide range of industries and with a global positioning,” Matthias Zachert, chairman of the board of management of LANXESS AG, said in the release. “It will make LANXESS one of the world’s largest suppliers of microbial control products.”
IFF’s microbial control business posts annual sales of around $450 million, LANXESS said. Products included in IFF’s microbial control business segment include those used in personal care and household products as well as those used for industrial water treatment, paints and coatings, among others.
IFF says the divestment forms part of a portfolio review. “This transaction is driven by the best-owner mindset and allows us to focus on our core businesses as we strengthen our balance sheet and maximize shareholder return. The divestiture also enhances IFF’s financial profile, providing growth acceleration and higher margins,” says Andreas Fibig, chairman and CEO of IFF.
At the beginning of August, LANXESS completed its acquisition of specialty chemicals manufacturer Emerald Kalama Chemical in a deal valued at $1.04 billion.