Lanxess to Buy Brazilian Biocide Producer
Germany’s Lanxess has agreed to acquire Jarinu, São Paulo, Brazil-based biocide producer Itibanyl Produtos Especiais (IPEL) for an undisclosed sum. Subject to approval by the relevant anti-trust authorities, the transaction is planned to be completed in the first quarter of 2020.
With the acquisition, the Cologne-based specialty chemicals company said it will gain access to strategic intermediate products and reinforce its position as one of the world’s leading manufacturers of active biocidal ingredients and formulations.
Family-run IPEL, which employs 100 people and has sales described as being in the “lower double-digit million euro range” in 2018, lays claim to being one of Brazil’s leading biocide manufacturers.
Along with the workforce and the production facility, Lanxess is also taking over the company’s laboratory facilities.
“The acquisition fits perfectly with our strategic focus on profitable specialty chemicals,” said Lanxess managing board member Rainier van Roessel. He said it also places the German company in a position to supply its South American customers locally rather than from production facilities in Europe, the US and Asia.
According to Oliver Kretschik, head of Lanxess’ Biocides business line in the Material Protection Products business unit into which IPEL will be integrated, the Brazilian company’s strong customer network will benefit in future from a wider product portfolio and its new owner’s regulatory expertise.
The Lanxess Material Protection Products unit employs around 540 people and has production sites in Krefeld-Uerdingen and Dormagen in Germany, as well as at Sudbury in the UK; Pittsburgh, Pennsylvania, and Memphis, Tennessee, USA: Jhagadia, India; Changzhou. China, and Singapore.
With a broad range of active antimicrobial ingredients and preservatives, the Lanxess unit provides customer-specific solutions for industries such as paints and coatings, disinfection and wood protection as well as building and beverage. It also provides comprehensive technical service and regulatory support as well as project-specific research and development.