EMERALD KALAMA CHEMICAL acquired by LANXESS
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 in 2020, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the AgriFood sector (11.0x).
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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
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|---|---|---|---|---|
| 04/2021 | TPG | THE MADE GROUP | AUSTRALIA | Dairy |
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| 12/2020 | APHEON (EX ERGON) | MILLBO BIONATURALS GROUP | ITALY | Ingredients |
| 12/2020 | CRONOS CAPITAL PARTNERS | EVERTON | ITALY | Coffee & Tea |
| 11/2020 | PLATINUM EQUITY | BISCUIT INTERNATIONAL | FRANCE | Food Products |
| 11/2020 | AMSTERDAM COMMODITIES | SUNOPTA - GLOBAL INGREDIENTS BUSINESS | NETHERLANDS | Ingredients |
| 11/2020 | RHONE CAPITAL | ILLYCAFFÈ | ITALY | Beverages |
| 10/2020 | HAUDECOEUR | PALAIS IMPÉRIAL | FRANCE | Coffee & Tea |
| 08/2020 | GLANDIA NUTRITIONALS | FOODAROM | CANADA | Ingredients |
| 06/2020 | ROYAL DSM | ERBER GROUP | AUSTRIA | Petfood |
REFERENCES
Valuation range: EV 1b - 4b EUR
Revenue range: 250M - 500M EUR
EBITDA range: 50M - 100M EUR
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Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.