Chemicals provider Lanxess AG (ETR: LXS) will buy the Chemours Co.’s (NYSE: CC) clean and disinfectant business for $230 million in cash. The sale does not include Chemours’ glycolic acid division.
The assets being acquired make chemicals and other ingredients that are used in disinfectants. The target is known for its Oxone and Virkon S brands, which provide disinfectants against bacteria and viruses. On the consumer side, the products are used to disinfect pools, spas along with electronics. The combined business has about $110 million in revenue.
“Through the acquisition, we will grow especially in North America, where we still see good opportunities,” says Lanxess chairman Matthias Zachert. Lanxess, based in Cologne, Germnany, will combine the business into its material protection products division, which consists of biocides and insecticides for wood protection, coatings and food.
Chemical distributors have seen robust buyer demand recently. Advent International will acquire agriculture chemicals producer Viakem SA de CV; FMC Corp. (NYSE: FMC) completed its purchase of Cheminova; and WL Ross Holdings Corp. (Nasdaq: WLRH) agreed to buy chemicals and plastics distributor Nexeo Solutions Holdings. For more on M&A trends in the chemicals sector, see Chemical Makers Keep Drawing Buyers.
Barclays Capital Inc. (NYSE: BCS) and Wachtell Lipton Rosen & Katz are advising Chemours.