LANXESS intends to take over the microbial control business of the U.S. group International Flavors & Fragrances Inc. (IFF). The acquisition will make the specialty chemicals company one of the world’s largest suppliers of microbial control products. Both companies signed a corresponding agreement on 23 August 2021.
Expands Active Ingredients Portfolio
IFF Microbial Control is one of the leading suppliers of antimicrobial active ingredients and formulations for material protection,
preservatives and disinfectants. The products are used in a wide range of applications, particularly in personal care and household products, industrial water treatment as well as paints and coatings.
The transaction is still subject to approval by the relevant antitrust authorities. In addition, the business must first be carved out from the IFF Group. LANXESS therefore expects the transaction to be completed in the second quarter of 2022.
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Also thanks to acquisitions in recent years, we are already well positioned as microbial control solutions provider. With IFF’s microbial control business, we can now expand our portfolio of active ingredients, enabling us to offer our customers additional application-oriented solutions. In addition, we are strengthening our value chain,” said Michael Schäfer, head of the Material Protection Products business unit. “
The business also gives us access to new technologies and enhances our regulatory position through additional registrations.”
Enhances Consumer Protection Segment
IFF Microbial Control offers a comprehensive portfolio of innovative and sustainable solutions. The products extend the life and ensure the functionality of end products. They also preserve water in industrial applications. Hygiene solutions from IFF Microbial Control are also used in functional textiles. They ensure that these remain germ-free for a longer time.
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In 2021, all signs are pointing to growth. The acquisition of IFF Microbial Control is already the fourth this year and LANXESS’ second largest ever. The business fits ideally into our strategic direction – specialty chemicals with attractive margins, applications in a wide range of industries and with a global positioning.”
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It will make LANXESS one of the world’s largest suppliers of microbial control products. At the same time, we are enhancing Consumer Protection to become the strongest segment in the Group and are once again taking LANXESS a decisive step forward in terms of profitability and stability,” said Matthias Zachert, chairman of the Board of Management of LANXESS AG.
With its recent acquisitions, LANXESS has created attractive growth opportunities and is now re-prioritizing its capital allocation. Against this background, the currently suspended share buy-back program will not be continued. The approximately 1.1 million shares already purchased will be cancelled.
Source: LANXESS