LANXESS Aktiengesellschaft: LANXESS signs contract to acquire Microbial Control business of IFF
Ad hoc according to Art. 17 paragraph 1 MMVO
LANXESS signs contract to acquire Microbial Control business of IFF
Cologne, August 23, 2021 - Specialty chemicals company LANXESS has signed an agreement to acquire the microbial control business from the US-based company International Flavors & Fragrances Inc. (IFF). The acquisition will create one of the leading global suppliers of biocides.
The microbial control business comprises two production sites in the US and approximately 270 employees worldwide. Sales amount to around USD 450 million* with EBITDA pre exceptionals approximating USD 100 million*. Around 75 percent of sales are generated in America and Asia.
For the transaction with an enterprise value of USD 1.3 billion LANXESS has secured bridge financing which is expected to be refinanced with senior corporate bonds. Closing of the transaction is expected in the second quarter of 2022 and among other items subject to the approval of the relevant regulatory authorities. In addition, the microbial control business has to be carved-out by IFF.
By acquiring the IFF microbial control business, LANXESS strengthens its specialty chemicals portfolio in the Consumer Protection segment and materially expands its growth businesses disinfection, home & personal care and material preservation.
With the recent acquisitions, LANXESS has created attractive growth opportunities and is now re-prioritizing its capital allocation priorities. Against this background, the currently suspended share buy-back program in the amount of EUR 463 million will be terminated. The approximately 1.1 million repurchased shares under the program will be cancelled.
Cologne, August 23, 2021
* on a normalized level, meaning in an average year
Forward-Looking Statements This company release contains certain forward-looking statements, including assumptions, opinions, expectations and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of LANXESS AG to differ materially from the estimations expressed or implied herein. LANXESS AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecast developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, no representative of LANXESS AG or any of its affiliated companies or any of such person's officers, directors or employees accept any liability whatsoever arising directly or indirectly from the use of this document.Contact: Andr? Simon LANXESS AG Head of Investor Relations Kennedyplatz 1 50569 K?ln, Deutschland Telefon: +49 221 8885-3494 Fax: +49 221 8885-4944 E-Mail: email@example.com
24-Aug-2021 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: LANXESS Aktiengesellschaft Kennedyplatz 1 50569 Cologne
Germany Phone: +49 (0)221 8885-3494 Fax: +49 (0)221 8885-4944 E-mail: firstname.lastname@example.org Internet: www.lanxess.com ISIN: DE0005470405 WKN: 547040 Indices: MDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange EQS News ID: 1228373 ? End of Announcement DGAP News Service