Lanxess Completes Acquisition of Emerald Kalama Chemical

Lanxess has completed the second-largest acquisition in its history with the takeover of Emerald Kalama Chemical, Vancouver, Wash., which was majority-owned by affiliates of private equity firm American Securities LLC.

Specialty chemicals for high-growth industrial applications, primarily in the plastics, paints and coatings and adhesives industries, accounts for around a quarter of the sales of the acquired businesses. The products will be integrated into Lanxess’ Polymer Additives business unit. Additives for plastics include non-phthalate PVC plasticizers and polyolefin modifiers, including antioxidants and nucleating agents.

Around three quarters of the sales of the acquired businesses are attributable to specialty products for the consumer care market.The acquisition makes Lanxess one of the leading providers of products for flavors and fragrances – an area in which the specialty chemicals company expects to see sustained strong growth rates. The substances are used primarily in personal care products, cosmetics and exclusive fragrances, as well as food and beverages. Lanxess is incorporating this business into the newly established Flavors & Fragrances business unit, which will become part of the Consumer Protection segment.

With the closing of the transaction, Lanxess grows by around 470 employees and the three production sites in Kalama/Washington (USA), Rotterdam (Netherlands) and Widnes (Great Britain).The acquisition also strengthens Lanxess’ leading position in the preservatives business. The new products will be used in high-growth applications in the food and beverage industry as well as in detergents, fabric softeners, cosmetics and personal care products.