Specialty chemicals company LANXESS has acquired Itibanyl Produtos Especiais Ltda. (IPEL). The family-run company with headquarters in Jarinu, São Paulo, is one of Brazil’s leading biocide manufacturers and generated sales in the lower double-digit million euro range in 2018.
Both companies signed an agreement to this effect on Thursday November 28, 2019. The parties have agreed not to disclose the purchase price. The transaction is still subject to the approval of the responsible antitrust authorities and is expected to be completed in the first quarter of 2020.
“The acquisition fits perfectly with our strategic focus on profitable specialty chemicals”, said Rainier van Roessel, member of the LANXESS Board of Management.
With the acquisition of IPEL in Brazil, the LANXESS Material Protection Products business unit is reinforcing its global presence and is now in a position to serve its South American customers from a local production facility. The business unit was previously represented with production facilities in Europe, the USA and Asia.
“With IPEL’s business, we are expanding our global production network and strengthening our position in South America”, said Oliver Kretschik, Head of the Biocides business line in the Material Protection Products business unit. “IPEL also has a strong customer network that will soon be able to benefit from our combined product portfolio and regulatory expertise.”
In addition to around 100 employees and the production facility, LANXESS is also taking over the Brazilian company’s laboratory facilities. With the acquisition, the specialty chemical company will also gain access to strategic intermediate products.
IPEL generates the majority of its sales with biocides and specialty chemicals for the paint and coating industry. Biocides protect materials from infestation, destruction and decay caused by microorganisms. The product portfolio also includes preservatives and fungicides for process control in water treatment as well as active ingredients for disinfection and cleaning agents.