Lanxess to buy Emerald Kamala in $1.08bn deal

German specialty chemicals company Lanxess has agreed to buy US-based rival Emerald Kalama Chemical in a $1.08bn deal.

Emerald is a manufacturer of specialty chemicals, especially for the consumer segment, and is majority-owned by affiliates of US private equity firm American Securities. The deal is expected to complete in the second half of the year.

In 2020, Emerald Kalama achieved sales of around $425m and EBITDA pre-exceptionals of approximately $90m.

Lanxess said that within three years after completion of the deal, it expects an additional annual EBITDA contribution of around $30m from synergy effects. The acquisition will already be earnings per share accretive in the first fiscal year after its completion.

Matthias Zachert, chairman of the board of management of Lanxess, said: "We are gaining further momentum on our growth course. The businesses of Emerald Kalama Chemical are an ideal fit for us. We will further strengthen our Consumer Protection segment and open up new application areas with strong margins, for example in the food industry and animal health sector.

"In addition, we will also enlarge our presence in our growth region of North America. All this will make us even more profitable and stable."

Emerald Kalama employs about 500 employees worldwide and runs production sites in Kalama, Washington (USA), Rotterdam (Netherlands) and Widnes (Great Britain). The business generates around 45% of its turnover in North America.