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02/2021

EMERALD KALAMA CHEMICAL acquired by LANXESS

UNITED STATES Food Processing / Ingredients EV 1b - 4b EUR

Context

LANXESS AG has signed a binding agreement to acquire 100% of the shares of Emerald Kalama Chemical from the US private equity firm American Securities LLC. This acquisition is a major strategic step for LANXESS, significantly strengthening its "Consumer Protection" segment by adding a complementary portfolio of high-margin preservatives and animal hygiene products. The deal also expands LANXESS's footprint in North America, which accounts for nearly half of the target's sales. The transaction is fully financed through LANXESS's existing liquidity and is expected to generate significant annual synergies within three years of completion.

EMERALD KALAMA CHEMICAL, which reported an EBITDA margin of LOGIN in 2020, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN to the average currently observed in the AgriFood sector (10.7x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

Emerald Kalama Chemical is a world-leading manufacturer of specialty chemicals, with a specific focus on the consumer segment. The company is the global leader in benzoate chemistry (preservatives). Its portfolio is split into two main areas: Consumer Specialties (75% of sales), which includes preservatives for food, household, and cosmetic applications, as well as flavors, fragrances, and animal nutrition products

Ent. Value

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Multiples

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Historical Financials (EUR)

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REFERENCES

Valuation range: EV 1b - 4b EUR

Revenue range: 250M - 500M EUR

EBITDA range: 50M - 100M EUR

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of EMERALD KALAMA CHEMICAL by LANXESS are reserved for mynth community members. Register for free to unlock full data.

Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).