German chemical company Lanxess is buying U.S.-based Emerald Kalama Chemical for an enterprise value of about $1.08 billion to strengthen its consumer business.
The company reported 2020 sales of around $425 million and earnings before interest taxes depreciation and amortisation (EBITDA) before exceptionals of around $90 million.
“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,” it said.
Lanxess said the acquisition would be earnings-per-share accretive in the first fiscal year after its completion. Within three years following completion it expects synergies, or cost savings, to generate an additional $30 million in annual EBITDA.
Read more at: Reuters
By Derek Francis, Vera Eckert, Jonathan Oatis and Pravin Char
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