Mergers & Acquisitions
March 1, 2021
Covestro Continues Systems House Divestitures
Covestro sells joint venture shares in Dubai systems house
Next step in ongoing portfolio optimization process
- Proceeds in the mid-single-digit million euro range
- Closing expected in the first half of 2021
- Systems house continues doing business independently, Covestro remains key supplier
On February 25, 2021, Covestro has signed an agreement on the sale of its 51 percent share in the joint venture Pearl Covestro Polyurethane Systems FZCO, which operates systems house business in Dubai (United Arab Emirates), to the current co-shareholder Pearl Industries Overseas Ltd. The sale will generate proceeds in the mid-single-digit million euro range. The divestment is part of Covestro’s ongoing portfolio optimization process and marks a further step in the strategic focusing of the Polyurethanes segment. Subject to regulatory approval, the closing is expected in the first half of 2021.
The joint venture was established under the former name BaySystems Pearl in Dubai (United Arab Emirates) in 2006 and has supplied Polyurethane Foam systems for several projects in the region. The systems house business will continue to operate as Pearl Polyurethane Systems after the transaction is concluded. Covestro will remain a key supplier of polyurethane raw materials based on the contract signed.
Covestro already sold its North American systems house business in 2017. In 2019, the sale of the European systems house business with sites in the Netherlands, Denmark, Spain, and Germany, as well as further businesses in Italy followed.
https://www.covestro.com/investors/news/covestro-sells-joint-venture-shares-in-dubai-systems-house/
March 1, 2021
Covestro Continues Systems House Divestitures
Covestro sells joint venture shares in Dubai systems house
Next step in ongoing portfolio optimization process
- Proceeds in the mid-single-digit million euro range
- Closing expected in the first half of 2021
- Systems house continues doing business independently, Covestro remains key supplier
On February 25, 2021, Covestro has signed an agreement on the sale of its 51 percent share in the joint venture Pearl Covestro Polyurethane Systems FZCO, which operates systems house business in Dubai (United Arab Emirates), to the current co-shareholder Pearl Industries Overseas Ltd. The sale will generate proceeds in the mid-single-digit million euro range. The divestment is part of Covestro’s ongoing portfolio optimization process and marks a further step in the strategic focusing of the Polyurethanes segment. Subject to regulatory approval, the closing is expected in the first half of 2021.
The joint venture was established under the former name BaySystems Pearl in Dubai (United Arab Emirates) in 2006 and has supplied Polyurethane Foam systems for several projects in the region. The systems house business will continue to operate as Pearl Polyurethane Systems after the transaction is concluded. Covestro will remain a key supplier of polyurethane raw materials based on the contract signed.
Covestro already sold its North American systems house business in 2017. In 2019, the sale of the European systems house business with sites in the Netherlands, Denmark, Spain, and Germany, as well as further businesses in Italy followed.
https://www.covestro.com/investors/news/covestro-sells-joint-venture-shares-in-dubai-systems-house/
February 15, 2021
Lanxess to Acquire Emerald Kalama
LANXESS signs contract to acquire Emerald Kalama Chemical
CologneFebruary 14, 2021
Specialty chemicals company LANXESS signed an agreement to acquire US-based Emerald Kalama Chemical from affiliates of American Securities LLC. Emerald Kalama Chemical is one of the leading global manufacturers of specialty chemicals especially for the consumer segment.
Emerald Kalama employs worldwide approximately 500 employees and runs three production sites. The company reported 2020 sales of around USD 425 million and EBITDA pre exceptionals of approximately USD 90 million. Around 45 percent of its turnover is generated in North America.
The enterprise value amounts to USD 1,075 million. The transaction will be financed by LANXESS existing liquidity. Closing of the transaction is anticipated in the second half of 2021 and subject to the approval of the relevant regulatory authorities.
By acquiring Emerald Kalama Chemical, LANXESS strengthens its specialty chemical portfolio especially in the Consumer Protection segment and would materially expand into the growth markets food and animal nutrition.
February 15, 2021
Lanxess to Acquire Emerald Kalama
LANXESS signs contract to acquire Emerald Kalama Chemical
CologneFebruary 14, 2021
Specialty chemicals company LANXESS signed an agreement to acquire US-based Emerald Kalama Chemical from affiliates of American Securities LLC. Emerald Kalama Chemical is one of the leading global manufacturers of specialty chemicals especially for the consumer segment.
Emerald Kalama employs worldwide approximately 500 employees and runs three production sites. The company reported 2020 sales of around USD 425 million and EBITDA pre exceptionals of approximately USD 90 million. Around 45 percent of its turnover is generated in North America.
The enterprise value amounts to USD 1,075 million. The transaction will be financed by LANXESS existing liquidity. Closing of the transaction is anticipated in the second half of 2021 and subject to the approval of the relevant regulatory authorities.
By acquiring Emerald Kalama Chemical, LANXESS strengthens its specialty chemical portfolio especially in the Consumer Protection segment and would materially expand into the growth markets food and animal nutrition.
February 9, 2021
Bain to Buy Lonza Anti-Microbials Unit
Bain Capital, Cinven buy Lonza unit in $4.67B deal
Published: Feb. 9, 2021 at 2:18 a.m. ET By
Pietro Lombardi
Private equity firms Bain Capital LLC and Cinven Group Ltd. have reached an agreement with Lonza Group AG to buy the Swiss life-sciences company’s specialty ingredients business for an enterprise value of 4.2 billion Swiss francs ($4.67 billion).
The unit, which has 17 manufacturing sites across the world and roughly 2,800 permanent employees, is specialized in microbial control solutions for products in the professional-hygiene and personal-care markets, as well as chemicals used in electronics, aerospace and other industries, the seller said late Monday.
“The sale of the Specialty Ingredients business will allow Lonza to focus on its position as a leading partner to the healthcare industry, and the free cash flows resulting from the sale will allow us to accelerate our strategic priorities,” Lonza Chairman Albert Baehny said.
The deal should be completed in the second part of the year.
https://www.marketwatch.com/story/bain-capital-cinven-buy-lonza-unit-in-467b-deal-2021-02-09
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