Lanxess’s water treatment business has attracted the interest of potential buyers since the German chemicals group put the unit on the block to streamline its portfolio, people close to the matter said.
Buyout groups AGIC Capital and AEA Investors as well as a Chinese peer are expected to hand in final offers worth up to 500 million euros (441.76 million pounds), including debt, for the operations by an end-July deadline, they added.
Other bidders, such as private equity firm Bridgepoint, have dropped out of the race for the business, which is expected to post earnings before interest, tax, depreciation and amortisation (EBITDA) of just below 40 million euros this year.
Lanxess and AGIC declined to comment. The other groups were not immediately available for comment.
Lanxess, a former unit of Bayer making products including pesticide ingredients, construction pigments and leather chemicals, has said that more strategic steps could be in the offing following recent acquisitions.
Having wrapped up the sale of 50 percent of its synthetic rubber business to Saudi Aramco in 2016 to reduce exposure to harsh competition in the sector, Lanxess branched out with the purchase of Chemours’ hygiene product ingredients business and of Chemtura, a U.S. maker of additives for lubricants and flame retardants.
Lanxess’ Liquid Purification Technologies business unit makes ion exchange resins and reverse osmosis membrane elements with productions sites in Leverkusen and Bitterfeld, Germany, and in Jhagadia, India. ($1 = 0.8579 euros)
By Arno Schuetze
Corteva (Indianapolis, Indiana) says it has signed a definitive agreement to acquire Stoller Group (Houston, Texas), a producer of biostimulants and plant nutrition products, for $1.2 billion. Stoller is one of the largest independent biologicals companies globally, with operations in more than 60 countries and more than $400 million in annual sales.
OMV has announced its new corporate structure today, designed to fully enable the delivery of Strategy 2030. The new organization will be built on five distinct areas. In addition to the CEO and CFO areas, three business segments will be established: Chemicals & Materials, Fuels & Feedstock, and Energy.
The European petchem sector is readying for some tough quarters. It’s a different picture in the US. So is this the best time ever to find a new role in the chemical industry? If you are in Europe, you would expect me to say probably not. But actually, it depends. So let me give you four answers to this question.