€2.4 billion deal brings lubricant additives and flame retardants expertise and expands North American operations
Germany’s Lanxess will significantly expand its footprint in North America by purchasing US-based speciality chemical company Chemtura. The €2.4 billion (£2.1 billion) deal give Lanxess access to Chemtura’s expertise in lubricant additives and flame retardants – both markets in which Lanxess anticipates medium-term annual growth of 3–4%.
Chemtura employs around 2500 people across 11 countries, with nearly half its revenue generated in North America. The company also develops and manufactures organometallic catalysts used to synthesise polymers, fine chemicals and pharmaceuticals.
Lanxess estimates the combined company could cut costs by about €100 million by 2020, around a quarter of which would be made next year. The deal, which is subject to regulatory approval, will require redundancy payments and other one-time costs of about €140 million.