ALTANA bolsters business with acquisitions and innovation investments
Sales below previous year’s level due to general economic conditions
In spite of the high level of uncertainty in the market, ALTANA again increased its research and development expenditure by 5 percent to 99 million euros in the first six months of the current year. The specialty chemicals group augmented its investments, particularly in site expansion and further digitization, by 52 percent compared to the corresponding period last year. ALTANA also fortified its market standing through strategic acquisitions. "Especially in times of economic fluctuations, the significance of continued targeted investments in the future is paramount,” remarked Martin Babilas, CEO of ALTANA AG. "We keep on pushing forward innovative solutions aimed at addressing the critical challenges of our time – drawing on our own resources and by acquiring promising ventures.”
Second largest acquisition in the company's history
Just a few weeks ago, ALTANA announced the acquisition of Von Roll Holding AG, based in Breitenbach, Switzerland. The transaction is the second largest acquisition in the company’s history. It encompasses the purchase of a majority stake from the previous owning family, alongside a public tender offer for the residual shares that are still traded on the Swiss stock exchange. In 2022, Von Roll generated net sales of 228 million Swiss francs with around 1,000 employees at 14 sites worldwide.
Von Roll is a leading specialist in electrical insulation systems. The company’s technologies and products are used in wind turbines, electric cars, and industrial plants, for example. The company’s novel insulation systems and special resins for the high-voltage sector are particularly future-oriented. Von Roll is to be integrated into the ELANTAS division. “We are combining the innovative strength of both companies to drive forward the expansion of electromobility and renewable energies,” says ALTANA CEO Martin Babilas.
ELANTAS' products are already contributing to the ongoing energy transformation. The division's wire enamel systems, for example, play a crucial role in enhancing the operational lifespan of wind turbine generators and expediting the recharging process for electric vehicles. Moreover, ELANTAS' casting materials are presently integral to Europe's first Hyperloop with passenger capsule, an innovative high-speed transportation solution.
ALTANA announced an additional acquisition at the beginning of August. The specialty chemicals group is acquiring the business of the U.S. company Imaginant Inc. to further strengthen its portfolio of testing and measuring instruments in the BYK division.
Economic weakness felt in all divisions
The prevailing economic fragility reverberated across all divisions. The largest division, BYK, recorded a 14 percent decrease in sales to 625 million euros. Adjusted for acquisition and exchange rate effects, sales were 13 percent below the previous year’s level. The acquisition of the business of Imaginant Inc. will take effect in the second half of 2023. The effect pigments specialist ECKART achieved sales of 181 million euros, corresponding to a 15 percent decline in sales (both nominal and operating). ELANTAS, a supplier of electrical insulation materials, recorded sales of 324 million euros, down 8 percent (6 percent in operational terms) from the prior-year figure. ACTEGA's sales fell by 8 percent (nominally and operationally), amounting to 262 million euros.
Europe remains strongest region in terms of sales
During the first half of 2023, all geographical regions were affected by the decreasing global demand as a consequence of the economic weakness. Europe, which remains the strongest region in terms of sales, garnered revenues of 543 million euros, marking an 8 percent decline (both nominally and operationally). Sales in Germany were down 12 percent (13 percent operationally). In the Americas, sales fell by 8 percent (10 percent operationally), aggregating to 403 million euros. The U.S. market decreased by 9 percent (10 percent operationally). Asia bore the most substantial impact, with sales declining by 19 percent (15 percent operationally), resulting in total sales of 419 million euros. This decline was predominantly driven by the Chinese market, which contracted by 22 percent (18 percent operationally) within the same timeframe.
At mid-year 2023 (June 30), ALTANA employed 6,911 people worldwide, 71 more than on June 30, 2022.
ALTANA does not anticipate a substantial recovery in the global economy during the second half of the year and, on this basis, foresees a decrease in sales in the upper single-digit percentage range for the full year 2023. To stabilize both earnings and cash flow ALTANA is implementing targeted measures. “Given our financial and innovative strength, the agreed acquisitions, and in particular the resilience demonstrated by our business model across numerous years, ALTANA is strongly positioned to navigate the challenges of the present landscape and capitalize on emerging prospects in a manner that generates value,” said ALTANA's CFO, Stefan Genten.
Other news from the department business & finance
BASF provides update on implementation of corporate strategy and commits to targets for Scope 3.1 emissions
Introduction of differentiated steering concept and new financial key performance indicators
Argonne and Idaho National Laboratories partner with CMBlu Energy for innovative long-duration energy storage project
The project aims to improve microgrids in cold climates and make fast charging of electric vehicles more affordable in underserved communities
AkzoNobel Powder Coatings partners with Swiss start-up coatingAI to explore new frontiers in sustainability
Lignovations Closes Seed Investment to Accelerate Lignin-Based Biomaterial Innovation
A multifunctional alternative to many synthetic chemicals in cosmetics, coatings, packaging, adhesives, and other applications
Net-zero chemicals industry initiative relaunches as the Global Impact Coalition
The CEO-led chemical industry initiative, incubated by the World Economic Forum, has been relaunched
Eppendorf and Neste forge strategic partnership to develop new line of renewable lab plastics
A sustainable choice for labs
Vulcan officially opened its Lithium Extraction Optimisation Plant
Europe’s first plant for fully domestic lithium chemicals production, to secure Europe’s lithium supply chain for Battery Electric Vehicle manufacturers
Spacetek Technology announces the successful closing of its Seed Financing Round
Time-of-flight mass spectrometers (TOF-MS) inspired by space technology
Start-up Better Basics Laborbedarf Wins First Place at the "Wiley Analytical Science Award 2024"
SmartRack® wins in the Separation, Laboratory Automation & Equipment Category
Hy2gen and Amogy Forge Strategic Partnership to Propel Ammonia-Powered Energy Solutions
Accelerate decarbonisation in the maritime sector
analytica 2024: Food analysis for sustainable nutrition
From PFAS to microplastics: focus on new harmful substances
BASF and SK On entered into an agreement to evaluate collaboration opportunities in the global lithium-ion battery market
Targeted collaboration around cathode active materials
Merck Confirms Forecast for Fiscal 2023 Despite Difficult Market Environment in Q3
Return to organic sales growth expected in 2024
Bayer: Third quarter below prior year as expected
Group outlook confirmed - By the end of next year, Bayer will remove multiple layers of management and coordination
Start-ups become changemakers – apply now!
ISC3 is looking for innovative solutions in the field of Sustainable Chemistry for textiles - Innovation Challenge 2024 endowed with 25,000 euros
HunterLab Spreads Its Vibrant Colors to Europe: Introducing 'HunterLab Europe'
Steering HunterLab Europe is none other than the Christian Jansen, who literally grew up in the color spectrophotometry world
Technology Group STRABAG invests € 100 million into battery and energy storage company CMBlu Energy
The ideal combination of technological and construction industry expertise to advance energy transition
Most read news
Microbes could help reduce the need for chemical fertilizers
A coating protects nitrogen-fixing bacteria: Start-up to commercialise coated bacteria for large-scale use in regenerative agriculture
Plastic-eating bacteria turn waste into useful starting materials for other products
Microbial Upcycling of Waste PET
Inauguration of the world’s first pilot plant for the cost-efficient production of green methanol
Start-up C1 Green Chemicals AG and research partners develop fundamentally new production process
New designs for solid-state electrolytes may soon revolutionize the battery industry
Scientists achieve monumental improvements in lithium-metal-chloride solid-state electrolytes
This is a battery
Two colored liquids bubbling through tubes: Is this what the battery of the future looks like?
Converting PFAS “forever chemicals” into valuable compounds
Scientists develop a new method to incorporate harmful perfluoroalkenes into N-heterocyclic carbene ligands
Not so silver lining: Microplastics found in clouds could affect the weather
Low-altitude and denser clouds contained greater amounts of microplastics
Graphene's proton permeability: A switch for future energy technologies
This discovery could lead to the development of more efficient hydrogen fuel cells and solar water-splitting devices
Lithium-ion batteries are no longer the gold standard in battery tech
On the way to safer and more powerful energy sources
Dow and Evonik announce startup of hydrogen peroxide to propylene glycol (HPPG) pilot plant
Innovative technology offer flexibility, lower costs, and a smaller environmental footprint
CO2-free hydrogen: BASF receives funding approval for 54-megawatt water electrolysis plant
Proton exchange membrane (PEM) electrolyzer expected to produce up to 8,000 metric tons of hydrogen per year
More news from our other portals
Bowel cancer: aspirin activates protective genes
Researchers have identified a signaling pathway by which aspirin can inhibit colorectal cancer.
Dunning-Kruger effect with muesli bars
Those who know the least consider themselves highly competent
New drug delivery system could reduce daily diabetes shots to just three a year
Dietary management drugs have transformed Type 2 diabetes care, but daily injection routines are challenging for some patients
Autonomous measuring instruments systematically detect new materials
A new algorithm measures materials libraries up to four times faster than before: It’s based on machine learning
Naked Clams: The New Superfood Sensation Emerging from the Depths
Researchers found Naked Clams contain almost twice the amount of Vitamin B12 as blue mussels and have developed an efficient way to farm them
Aston University technology to combat the not-so sweet practice of honey fraud
Light technology to be used to detect if honey is blended with cheap additions
Researchers discover new ultra strong material for microchip sensors
A material that doesn't just rival the strength of diamonds and graphene, but boasts a yield strength 10 times greater than Kevlar
How stem cells and immune cells communicate
Lisec Artz Award for Simon Haas: Groundbreaking discovery of an unknown protective mechanism against blood cancer from stem cells
Pushers, overcrowded trains and phone zombies
Sprite presents the world's first vending machine that responds to the things that bother Generation Z the most
Scientists use quantum biology, AI to sharpen genome editing tool
"This study represents an exciting advancement toward, understanding how we can avoid making costly ‘typos’ in an organism’s genetic code"
Tönnies Group launches first nationwide "Meat Climate Platform"
100 guests at the Future Forum for Agriculture
Fatty acid factory filmed at work
High-resolution images provide new insights into cellular fatty acid production: Potential for medicine and biotechnology
From the trough to the plate - digitally calculated
Computer program "ConTrans" estimates how much of an undesirable substance is transferred from animal feed to food
Tracking down Environmental Toxins
Detection of per- and polyfluoroalkyl substances (PFAS) by interrupted energy transfer
The weight of pollution: exposure linked to obesity
Chronic exposure to environmental pollutants found to increase risk of cardiovascular disease
Are healthy foods automatically sustainable, too?
Perceptions about sustainability and healthy food choices are closely linked
‘Hot’ new form of microscopy examines materials using evanescent waves
“This microscope technology is completely new, so we’re still learning specifically how and where it can be applied”
Textbook knowledge turned on its head: 3-in-1 microorganism discovered
Newly multifunctional bacterial species
Could eating turkey ease colitis?
According to data in mice, extra tryptophan could reduce the risk of future colitis flares