Lanxess AG, the Cologne-based German specialty chemical company, had agreed to a $1.08 billion buyout deal for the Washington-based American multinational chemical firm Emerald Kamala Chemical in a move that analysts claimed would shore up the German chemical firm’s consumer businesses.
In factuality, Lanxess AG, the German chemicals company founded back in the 2004s following a partial spin-off of the chemical and polymer division of German pharmaceutical and bioscience industry conglomerate Bayer AG, had issued a statement late on Sunday saying that its management board had agreed to a $1.1 billion buyout deal for Emerald Kamala Chemical, while the Cologne-based chemical company had also added that it had been mulling an all-cash acquisition of the US-based chemical firm.
The German firm in tandem was quoted saying in the statement that the deal, which would likely to be subjected to regulatory approvals, was expected to be concluded by the later half of 2021.
Lanxess agrees to $1.1 billion acquisition of Emerald
Besides, according to the Lanxess statement issued late on Sunday, the German company was purchasing the Washington-based chemical firm from affiliates of a New York-based private equity company American Securities LLC having had assets worth of $23 billion under management to-date.
Apart from that, several analysts were quoted saying following the announcement that an acquisition of Emerald, the US-based speciality chemicals company that primarily centres its focuses on food preservatives, cosmetic and household applications, fragrances and flavours alongside plastics and adhesive agents, would highly likely to strengthen footprints of the German specialty chemical company in a highly clogged North American specialty chemicals market largely dominated by the Michigan-based Dow Chemical Co.
Meanwhile, expressing an out-and-out optimism over an Emerald Kalama takeover, Lanxess AG said in the statement, “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 of food and animal nutrition. ”