LANXESS is a leading specialty chemicals company with sales of €7.9 billion in 2015 and about 16,700 employees in 29 countries. Chemtura Corporation had 2015 sales of $1.7 billion, and is a global manufacturer and marketer of specialty chemicals.
“For the past year, our management team and Board of Directors have been actively working to identify a transformative opportunity to create value for our shareholders and to enhance the scale, strength and diversity of our business, both vertically and geographically, for the benefit of our customers and employees. The transaction we are announcing today delivers on that promise,” said Craig A. Rogerson, president, CEO and chairman of the Board of Chemtura. “It provides premium value to our shareholders and benefits our customers and employees by making Chemtura part of a larger, stronger global enterprise with the resources to fully support a more diverse suite of specialty chemicals products and services.”
“With this acquisition, we are forming a major global player in the field of additives and are significantly strengthening our already profitable portfolio,” added Matthias Zachert, CEO and chairman of the Board of Management of LANXESS. “We are confident that this transaction will create new and exciting opportunities for the customers and employees of both companies. The Chemtura team has built four industrial businesses into a highly attractive group of assets. In addition to the additives segment, Chemtura’s urethane and organometallics businesses will further diversify our company’s product offering.”
“We believe LANXESS’s offer is recognition of the strength of our business, product portfolio and exceptional global team,” Rogerson concluded. “I am confident that LANXESS shares Chemtura’s commitment to quality, safety and service and is the right home to ensure a bright future ahead.”
LANXESS will fund the transaction through existing liquidity and the issuance of new debt. The transaction is expected to close around mid-2017, subject to approval by the holders of Chemtura’s common stock, customary closing conditions and regulatory approvals.