LANXESS acquires the microbial control business of International Flavors and Fragrances for US$1.3 billion

On August 25, the German specialty chemicals company LANXESS announced that it will acquire the microbial control business of the American International Flavours and Fragrances Company (IFF) for approximately US$1.3 billion (1.1 billion euros). LANXESS is expected to complete it in the second quarter of 2022. trade.

The two companies signed the corresponding agreement on August 23, 2021. This transaction is still subject to the approval of the relevant antitrust authorities. In addition, the microbiological control business must first be spun off from the IFF Group.

The sales of IFF's microbiological control business are approximately US$450 million, and the profit before interest, tax, depreciation and amortization is approximately US$100 million. Within four years after the completion of the transaction, LANXESS expects that the synergy will bring about 35 million U.S. dollars (30 million euros) in EBITDA.

It is reported that the acquisition of IFF’s microbial control business is LANXESS’s fourth acquisition this year and the second largest acquisition in the company’s history. This will make LANXESS one of the world’s largest suppliers of microbial control products.

IFF's microbiological control department is one of the leading suppliers of antimicrobial active ingredients as well as material protection, preservatives and disinfectant formulations. It has approximately 270 employees, and the St. Charles production site in Louisiana, USA, and the Instituto production site in West Virginia. . After the completion of the acquisition, this business will be incorporated into LANXESS's material protection business unit.