COLOGNE, Germany – Specialty chemicals company LANXESS announced it has completed the acquisition of Emerald Kalama Chemical. The U.S.-based company is a leading manufacturer of specialty chemicals. LANXESS signed a purchase agreement on Feb. 14, 2021. All required regulatory approvals have been received. LANXESS financed the purchase price of around $1.04 billion (€870 million) from liquid funds.
In 2020, Emerald Kalama Chemical generated global sales of around $425 million (€375 million) and EBITDA pre-exceptionals of around $90 million (€80 million). Seventy-five percent of sales were attributable to business with specialty products for the consumer care market, especially products for flavors and fragrances, as well as preservatives for use in food, household products and cosmetics. One quarter of sales originated from business with specialty chemicals for industrial applications. With the closing of the transaction, LANXESS grows by around 470 employees and the three production sites in Kalama, Washington; Rotterdam, the Netherlands; and Widnes, Great Britain.
The second-biggest acquisition in LANXESS’s history sees the company expanding its range of specialty chemicals for industrial applications, especially for the plastics, paint and coatings, and adhesives industries.
One important addition to the new LANXESS portfolio is the K-Flex range of non-phthalate plasticizers and coalescents for adhesives, coatings, sealants and vinyl applications. K-Flex plasticizers optimize production processes and end-product properties. They are highly compatible with polar polymers in water-based adhesive systems and improve film formation in paint and coatings. During the manufacture of PVC articles, the rapid-gelling dibenzoates can help to speed up processing.
“The new products broaden the existing LANXESS range and offers growth opportunities in the area of non-phthalate plasticizers which meet the most modern requirements of the plastics processing industry,” said Dr. Thomas Facklam, Head of Global Application Technology in the Polymer Additives business unit.
Other important additions to the overall portfolio for industrial applications include Kalama Vitroflex plasticizers for the manufacture of polysulfide sealants and Modulast modifiers, which were developed for use in reactive polyurethane systems.
Benzoic acid, benzaldehyde and benzoate salts will supplement the LANXESS offering in the future. These are used as intermediates, building blocks and additives in a number of industrial applications, e.g. for the production of esters, alkyd resins or corrosion inhibitors.
Detailed information about the company’s products can be found at www.lanxess.com.