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 premium to the 10.1x average currently observed in the AgriFood sector.

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.