My watch list
my.chemeurope.com  
Login  

LANXESS plans to acquire phosphor additive business in the US

With an excellent third quarter LANXESS aims on record year

16-Nov-2017

Specialty chemicals company LANXESS is expanding its Additives segment and plans to acquire the phosphorus chemicals business with a US production site from Belgian chemical group Solvay. Both companies have signed an agreement to this effect. The transaction is projected to conclude in the first half of 2018, subject to customary regulatory approvals. The acquisition fully complements LANXESS’s strategy to grow its business in mid-sized markets and in the regions North America and Asia.

The site in Charleston, South Carolina, includes six production units, where roughly 90 employees manufacture phosphorus chloride plus numerous derivative products such as flame-retardants and intermediates for the agrochemical industry. The business represents annual sales of around EUR 65 million.

"With this acquisition, we are benefitting from a North American platform for phosphorus-based specialty chemicals – a key component of our additive business – and are able to further drive our growth in this key region," said Anno Borkowsky, General Manager of the Additives business unit at LANXESS.

With annual sales of around EUR 2 billion and roughly 2,000 employees around the globe, the additives business is an important pillar of the LANXESS group.

Third quarter results show significant growth in all segments

Global sales increased by 25.1 percent or EUR 483 million to EUR 2.4 billion. A year earlier, they amounted to EUR 1.9 billion. EBITDA pre exceptionals improved by 35 percent to EUR 347 million, compared with EUR 257 million in the prior-year quarter. The contributions from the acquired Chemtura businesses as well as higher volumes had a particularly positive effect. The EBITDA margin pre exceptionals in the third quarter of 2017 stood at 14.4 percent, which was considerably above the value of 13.4 percent reported in the prior-year period.

LANXESS is in full swing. Our clear strategic focus on high-margin specialty chemicals is increasingly paying off, and in operational terms we are performing very well in our new setup. It is particularly pleasing that all regions and all our specialty chemicals segments are seeing considerable earnings growth,” said Matthias Zachert, Chairman of the LANXESS Board of Management.

Due to one-time exceptional charges, net income was EUR 55 million, after EUR 62 million in the prior-year quarter. These one-time effects resulted primarily from the consolidation of the production of lubricant precursors and the associated discontinuation of production at the Ankerweg site in Amsterdam (Netherlands). Net income pre exceptionals increased by 37.7 percent to EUR 106 million, compared with EUR 77 million in the prior-year quarter.

After the strong figures of the third quarter, the Group is refining its earnings forecast for 2017 and lifting the lower end of the range by EUR 25 million. LANXESS now expects EBITDA pre exceptionals of between EUR 1.25 billion and EUR 1.3 billion. This would be a record for the Cologne based company, as its highest operating result to date is the roughly EUR 1.2 billion achieved in 2012.

Facts, background information, dossiers
  • Solvay
  • phosporous additives
  • acquisitions
  • quarterly reports
  • Lanxess
More about Lanxess
  • News

    LANXESS strengthens global production network for flame retardants

    Specialty chemicals company LANXESS plans to strengthen its global asset base for flame retardant additives with investments of around EUR 200 million over the next three years. The company runs a strongly backward integrated production network for bromine and phosphorous based flame retard ... more

    LANXESS invests in production for ion exchange resins in Leverkusen, Germany

    Specialty chemicals company LANXESS is investing in its ion exchange resin production facility at the Leverkusen, Germany, site. The company is optimizing its process technology and operating efficiency for a seven-figure EUR amount. The project is scheduled for completion in the first half ... more

    LANXESS plans cooperation with Standard Lithium for lithium recovery in the United States

    Specialty chemicals company LANXESS and Canadian company Standard Lithium Ltd. are planning to collaborate on the commercial production of battery grade lithium from the brine at El Dorado, Arkansas, USA. Both parties are currently considering setting up a joint venture. LANXESS operates th ... more

  • Companies

    LANXESS Deutschland GmbH

    LANXESS is a leading specialty chemicals company and operates in all important markets of the world. Its core business comprises the development, manufacture and sale of high-tech plastics, high-performance rubber, specialty chemicals and intermediates. In addition, it helps its customers i ... more

    LANXESS Sybron Chemicals Inc.

    LANXESS Sybron Chemicals Inc., provides world-class ion exchange resins to meet the needs of numerous applications. The global strength of Lewatit ion exchange resins in industrial water and chemical processing markets is joined with the solid position Ionac ion exchange resins enjoy in the ... more

    LANXESS S.A.

    LANXESS is listed as the fourth largest German Chemistry Corporation in the Frankfurt Stock Exchange. With our extensive portfolio we are active in all the markets of the world. Our product pallet ranges from base, specialty and fine chemicals to plastics and rubbers. In addition, we sup ... more

Your browser is not current. Microsoft Internet Explorer 6.0 does not support some functions on Chemie.DE