LANXESS sells polyurethane systems and officially exits polymer business

Specialty chemicals company LANXESS signed a contract on October 3 to sell its polyurethane systems business to Japan's Ube Kosan Co., Ltd. The business is valued at 460 million euros and has expected revenue of approximately 500 million euros. With this transaction, LANXESS exits its remaining polymer business.

The polyurethane systems business includes five production sites around the world and application laboratories in the United States, Europe and China. Ube Kosan will take over all operations of LANXESS, with a total number of employees of approximately 400. The polyurethane systems business generated sales of approximately €250 million in the trailing 12 months to June 2024.

LANXESS will use the proceeds to reduce its net debt. Leverage (net debt/ex-EBITDA) may be reduced by approximately 0.5x.

Matthias Zachert, Chairman of the Board of LANXESS AG, said: “The sale of Polyurethane Systems marks another milestone in our rapid transformation into a pure-play specialty chemicals company as we divest the last remaining polymer business in our portfolio. We firmly believe Under Ube Kosan's leadership, the polyurethanes business will have significant growth and development opportunities. At the same time, we are using the transaction proceeds to further reduce net debt to strengthen our balance sheet."

The transaction still requires approval from relevant authorities. LANXESS expects the transaction to close in the first half of 2025.