LANXESS to acquire IFFs microbial control business

Published on : 25 August 2021

LANXESS to become one of the worlds largest suppliers of microbial control products.

Cologne, August 24, 2021 – LANXESS is taking another big step on its growth course: the specialty chemicals company intends to take over the microbial control business of the US group International Flavors & Fragrances Inc (IFF). Both companies signed a corresponding agreement on August 23, 2021. IFF Microbial Control is one of the leading suppliers of antimicrobial active ingredients and formulations for material protection, preservatives and disinfectants. The products are used in a wide range of applications, particularly in personal care and household products, industrial water treatment as well as paints and coatings.

The transaction is still subject to approval by the relevant antitrust authorities. In addition, the business must first be carved out from the IFF Group. LANXESS therefore expects the transaction to be completed in the second quarter of 2022.

The IFF microbial control business represents sales of around USD 450 million and EBITDA of approximately USD 100 million. Within four years after the closing of the transaction, LANXESS expects synergies to add approximately USD 35 million (EUR 30 million) in EBITDA. The acquisition is expected to be earnings per share accretive already in the first fiscal year after closing.

“In 2021, all signs are pointing to growth. The acquisition of IFF Microbial Control is already the fourth this year and LANXESS’ second largest ever. The business fits ideally into our strategic direction – specialty chemicals with attractive margins, applications in a wide range of industries and with a global positioning. It will make LANXESS one of the world’s largest suppliers of microbial control products. At the same time, we are enhancing Consumer Protection to become the strongest segment in the Group and are once again taking LANXESS a decisive step forward in terms of profitability and stability,” said Matthias Zachert, Chairman of the Board of Management of LANXESS AG.

Source - Industrial Automation Magazine