LANXESS has signed an agreement to sell its Urethane Systems business to Japan's UBE Corporation, with an enterprise value of €460 million and anticipated proceeds of approximately €500 million. The sale is part of LANXESS' strategy to exit its remaining polymer-related operations.
The Urethane Systems division includes five manufacturing sites across the globe and application laboratories in the USA, Europe, and China, employing around 400 people. Over the last twelve months, as of June 2024, the business generated sales of around €250 million.
LANXESS plans to use the proceeds to reduce its net debt, potentially lowering its leverage ratio (net debt / EBITDA pre) by 0.5x.
"This divestiture is a significant step in our rapid transformation towards becoming a pure specialty chemicals company," said Matthias Zachert, Chairman of the Board of Management of LANXESS AG. "We believe UBE will provide the Urethane business with enhanced growth opportunities, and the proceeds will strengthen our balance sheet by further reducing our debt."
The transaction is pending regulatory approvals and is expected to be completed in the first half of 2025.
Source: LANXESS
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