500-million-euro transaction: Lanxess sells Urethane Systems business to UBE
Specialty chemicals company Lanxess has agreed to sell its Urethane Systems business to Japan’s UBE Corporation for around 500 million euros, marking the company’s final exit from the polymer business.
Specialty chemicals company Lanxess has signed an agreement to sell its Urethane Systems business to Japan’s UBE Corporation. The transaction is valued at €460 million, with expected proceeds of around €500 million. The sale marks the completion of Lanxess’ exit from the polymer business.
The Urethane Systems business comprises five production sites worldwide and application technology laboratories in the United States, Europe and China. UBE Corporation will acquire all operations from Lanxess, which together employ around 400 people. The Urethane Systems business generated sales of around EUR 250 million in the last twelve months through June 2024.The company intends to use the proceeds from the sale to reduce its net debt. The leverage ratio (net debt/EBITDA pre exceptionals) should thus be reduced by ~0.5x.
‘The sale of Urethane Systems is another milestone in our rapid transformation into a pure specialty chemicals company, as we are divesting the last remaining polymer business in our portfolio. We are convinced that the Urethanes business will have significantly enhanced prospects for growth and development under the umbrella of UBE,’ says Matthias Zachert, Chairman of the Board of Management of Lanxess. ’At the same time, we are strengthening our balance sheet with the proceeds from the transaction by further reducing our net debt.’
The transaction is still subject to the approval of the relevant authorities. Closing is expected in the first half of 2025.
