Lanxess to Buy Solvay's US Phosphorus Additives Business
In a move to expand its additives portfolio, Germany’s Lanxess has clinched a deal with Solvay to acquire the Belgian chemical producer’s US phosphorus chemicals business based at Charleston, South Carolina. Anno Borkowsky, general manager of the additives business unit, said the buy will help the company to “further drive our growth in this key region."
The deal is planned to close in the first half of next year, subject to customary regulatory approvals. Lanxess said the acquisition fully complements its strategy to grow its business in mid-sized markets and in the regions North America and Asia.
With the takeover, which will add €65 million in sales to the €2 billion of its own additives slate, the German specialty chemicals producer will gain six production units and roughly 90 employees to complement its own 2,000-member additives staff. Along with phosphorus chloride, the Solvay plant produces derivatives such as flame retardants, plastics additives and intermediates for the agrochemical industry.
For Solvay, Michael Radossich, president of the Technology Solutions global business unit, said the divestment will strengthen the company’s focus and allow it to concentrate its resources on its existing leadership positions in phosphine gas, phosphine derivatives and phosphorous specialties.
In Lanxess, Radossich said, Solvay’s Charleston employees and customers “will have a buyer with a strategic, geographic and technical fit to expand the business and its offerings.”