LANXESS completes acquisition of Emerald Kalama Chemicals

On 4^th August 2021, it was reported that LANXESS has completed the acquisition of specialty chemicals manufacturer Emerald Kalama Chemicals after company received all required regulatory approvals. LANXESS signed a purchase agreement on February 14, 2021 and  financed the acquisition deal of approximately USD 1.04 billion from liquid funds.

Emerald Kalama Chemicals generated global sales of around USD 425 million and EBITDA pre-exceptionals of nearly USD 90 million in 2020. Business with specialty products for the consumer care market, especially products for flavors and fragrances, as well as preservatives for use in food, household products and cosmetics contributed to 75% of the total sales generated by the company in 2020 with rest of the sales coming from business with specialty chemicals for industrial applications.

LANXESS grew by around 470 with the completion of the acquisition deal and added three production sites in Kalama/Washington (USA), Rotterdam (Netherlands) and Widnes (Great Britain) to its existing portfolio.

Acquisition of Emerald Kalama Chemicals is the second biggest acquisition deal in the history of LANXESS, only topped by the acquisition of Chemtura Corporation for USD 2.68 billion in September 2016. The acquisition of Emerald Kalama Chemicals sees the company expanding its range of specialty chemicals for industrial applications, especially for the plastics, paints and coatings as well as adhesives industries.

The acquisition of Emerald Kalama enables LANXESS to significantly expand its portfolio of preservatives. Key products for the food industry include sodium and potassium benzoate under the Kalama, Purox and Kalaguard brands. They act as gentle preservatives in foods, drinks, personal care and home care products with a pH level of up to 6.5.

The acquisition further takes LANXESS to the being one of the leading providers of products for flavors and fragrances for the consumer sector. Products such as aldehydes and benzoates are distinguished by their premium quality, safety and unique flavor profiles.

Flavouring and fragrances are an essential part of personal care products, cosmetics and exclusive fragrances along with food & drinks. The products in the new LANXESS portfolio encompass over 30 aroma chemicals, providing a range of earthy, floral, fruity, spicy and herbal notes.

LANXESS is going to integrate the flavorings and fragrances business and benzyl alcohol business into the newly established Flavors & Fragrances business unit led by Holger Hueppeler.