LANXESS completes the acquisition of the microbial control business unit of the U.S. group International Flavors & Fragrances Inc. (IFF).
The specialty chemicals company is significantly increasing its portfolio of antimicrobial active ingredients and formulations for material protection, preservatives and disinfectants and is strengthening its presence, especially in the United States.
Addition of Phenoxyethanol
LANXESS also benefits from the addition of Phenoxyethanol to its already large personal care and household preservative portfolio. Phenoxyethanol is an additional pillar for the company’s customer preservation strategy in addition to isothiazolinones and sodium benzoate allowing to offer customized solutions to customers and enable them to adapt their preservation to the growing regulatory challenges.
LANXESS’ Preventol products combined with newly acquired Kathon, Bioban and Rocima brands form one of the broadest portfolios for plastics, paints and coatings, construction materials, wood preservation, leather and for both wet- and dry-state preservation.
LANXESS is also strengthening its position in the field of industrial preservation and one of the largest suppliers for isothiazolinone-based preservatives.
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With this acquisition we receive another major boost for our Consumer Protection segment. It will soon become our strongest segment and is thus an important engine on the way to make LANXESS even more stable and profitable,” said Matthias Zachert, chairman of the board of management of LANXESS AG.
Preliminary Price for Acquisition
LANXESS paid a preliminary purchase price of approximately USD 1.3 billion for the acquisition. The acquisition brings strategic biocidal active substances, a large registration package and strong brands which are a perfect fit for the LANXESS microbial control portfolio.
LANXESS further adds silver-based technology to the portfolio and offers now a complete solution for the antimicrobial treatment of textiles. The silver ion-based products known under the Silvadur brand prevent or reduce odors in natural or synthetic fibers.
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By combining LANXESS’ and the acquired businesses, we are now building a strong and broad product and technology platform for microbial control and biocides, from active ingredients to powerful formulations,” said Michael Schaefer, head of the Material Protection Products business unit.
With the closing of the transaction, LANXESS adds two production sites to its network in St. Charles, Louisiana, and Institute, West Virginia, both in the United States. The new business will be integrated into the Material Protection Products business unit of LANXESS.
Explore LANXESS's Antimicrobial Products Range
Source: LANXESS