LANXESS has entered an agreement to sell its Urethane Systems division to Japan-based UBE Corporation.
This strategic move signals LANXESS’s full exit from polymer-related products as part of its transformation into a specialized chemical solutions provider. The deal is valued at approximately €460 million, with the company expecting to generate proceeds close to €500 million.
Transforming into a Pure-play Specialty Chemicals Company
The Urethane Systems business, which includes five global manufacturing sites and application labs in the USA, Europe, and China, will be transferred to UBE Corporation. Approximately 400 employees from LANXESS will also be integrated into UBE’s operations. Over the past year, Urethane Systems generated €250 million in sales as of June 2024.
With this sale, LANXESS will further reduce its net debt, improving its financial position. The expected reduction in the company’s leverage ratio by about 0.5x reflects LANXESS’s ongoing efforts to optimize its balance sheet.
“The sale of Urethane Systems marks another milestone in our fast transformation into a pure-play specialty chemicals company, as we are divesting the last remaining polymer business in our portfolio. We are convinced that the Urethanes business will have significantly enhanced opportunities for growth and development under the umbrella of UBE,” says Matthias Zachert, chairman of the Board of Management of LANXESS AG. “At the same time, we are using the proceeds from the transaction to strengthen our balance sheet by further reducing our net debt.”
The transaction remains subject to the approval of the relevant authorities. LANXESS expects the transaction to close in the first half of 2025.
Source: LANXESS
https://omnexus.specialchem.com/