LANXESS has agreed to acquire the Material Protection business of Switzerland’s Syngenta. As a result, the German specialty chemicals company will become one of the leading suppliers of biocides for construction materials. The transaction is expected to close in April 2011. Both parties have agreed not to disclose the acquisition price.
LANXESS will gain access to a broad range of fungicidal and insecticidal active ingredients as well as application technologies used to protect construction materials such as wood, wallboards and coatings from being discolored and damaged.
Syngenta’s Material Protection business had sales of around EUR 19 million in 2010. Some 90 percent of sales is generated in Europe and North America. LANXESS will acquire the intellectual property, customer lists, supply contracts and registrations for the Syngenta products. Employees and fixed assets are not part of the transaction. The transaction will be financed from existing liquidity.
The acquisition is also the starting point for a long-term strategic partnership between both companies. LANXESS will gain access to active ingredients and technologies developed by Syngenta in the future, for use in material protection.