Lanxess takes over Chemours’ Clean and Disinfect specialities business

Acquisition will allow Lanxess to expand its position in a high margin market

Speciality chemicals company Lanxess is expanding its portfolio of material protection products by acquiring the Clean and Disinfect business of US-based chemical company Chemours for €210m.

The business comprises active ingredients as well as speciality chemicals used especially in disinfectant and hygiene solutions. One of its core products is the Virkon S branded disinfectant that is being deployed globally in the growth sector of veterinary disinfection and in the combat against major diseases such as Foot-and-Mouth disease or Avian Influenza.

The transaction is expected to close in the second half of 2016, subject to approval from the relevant antitrust authorities.

The deal is Lanxess's first acquisition following the completion of its realignment programme. 'We plan to enhance our position particularly in mid-sized, less cyclical markets with high margins and sound growth prospects,' said Matthias Zachert, Chairman of the Board of Management. 'We have made quick headway and are now expanding our speciality chemicals portfolio which will make us more profitable and more resilient.'

Chemours‘ Clean and Disinfect business has 170 employees worldwide and three production sites in Memphis and North Kingstown, US, and Sudbury, UK. In 2015, the business achieved sales of around €100m, of which North America accounted for roughly half. 'Through the acquisition, we will grow especially in the region of North America, where we still see good opportunities,' added Zachert.

The new business will be integrated into Lanxess’ Material Protection Products business unit. 'With the acquisition of Chemours’ Clean and Disinfect business, we are not only expanding our portfolio of active ingredients, but are also able to establish a forward integrated value chain in the veterinary disinfection segment,' said Michael Schäfer, head of the Material Protection Products business unit. 'Above all, we will benefit from Chemours’ experienced and dedicated employees, its strong technical and regulatory expertise, its widely recognised brands and well-established distribution networks.'

Chemours’ Clean and Disinfect business is comprised of three segments: disinfectants, potassium monopersulfate and chlorine dioxide. Each segment holds leading positions worldwide and serves attractive markets that benefit from intact growth trends. Above all, the global veterinary disinfection segment is expected to see a 6% CAGR in 2015-2020.

The segment of disinfectants focuses on providing solutions for veterinary disinfection. Its core product, the globally leading powder disinfectant marketed under the brand name Virkon S, has proved to be successful against a multitude of viruses, bacteria and fungi. It is deployed, among others, to combat major diseases such as foot-and-mouth disease, swine vesicular disease or avian influenza.

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