Lanses Acquires Microbial Control Division of US Specialty Chemicals Company IFF

[Asia Economy Reporter Hwang Yoon-joo] LANXESS is accelerating the growth of its consumer protection business division by acquiring the microbial control business of the American specialty chemical company 'IFF'.

IFF's microbial control business division is a global leading supplier of antimicrobial active ingredients and formulations for product protection, preservatives, and disinfectants, providing sustainable innovative solutions to various industries including personal hygiene products, household goods, industrial water treatment, paints, and coatings.

The acquisition agreement was signed at the end of August, with the acquisition price around 1.3 billion USD (approximately 1.1 billion Euros). The acquisition process is expected to be completed within the second quarter of 2022 after antitrust regulatory approval and a carve-out from the IFF group. IFF's microbial control business division generates approximately 450 million USD in sales and about 100 million USD in EBITDA (earnings before interest, taxes, depreciation, and amortization). LANXESS expects synergy effects of about 35 million USD (30 million Euros) in additional EBITDA within four years after the acquisition is completed.

IFF's microbial control business division has about 270 employees and owns two production facilities located in St. Charles, Louisiana, and Institute, West Virginia, USA. Upon completion of the acquisition, it will be integrated into LANXESS's functional protection products division.

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