Lanxess acquires Pittsburgh-based biocide specialist Verichem for undisclosed sum in effort to bolster its position in U.S. material protection market, broaden its global biocide production network
LEVERKUSEN, Germany and PITTSBURGH
November 10, 2011
– LANXESS broadens global biocide manufacturing platform
Strengthening focus on megatrend urbanization
LANXESS is strengthening its portfolio of biocides with the acquisition of Verichem Inc. based in Pittsburgh, Pennsylvania. As a result, the German specialty chemicals company will significantly bolster its position in the U.S. material protection market and broaden its global biocide manufacturing network. Both parties have agreed not to disclose financial details.
LANXESS will gain access to a complementary portfolio of biocides, as well as active ingredients registered with the U.S. Environmental Protection Agency (EPA). They are used to protect coatings, adhesives, construction materials, as well as pulp and paper. The biocides prevent the deterioration and discoloring of materials caused by microorganisms.
Verichem is a privately owned company currently employing around 20 people. It recorded sales of roughly USD 10 million in 2010. Verichem's production site is located close to LANXESS’ U.S. headquarters in Pittsburgh.
“This transaction underlines LANXESS’ standing as a key supplier of high-tech solutions for the megatrend urbanization,” said Rainier van Roessel, Member of the LANXESS Board of Management. “In addition, this is the second acquisition we have made in the USA within a few weeks, thus strengthening our commitment to the North American market.”
The transaction will close with immediate effect. Verichem will be integrated into the LANXESS business unit Material Protection Products (MPP).
MPP is already one of the world’s leading suppliers of biocides. It has recently strengthened its position as a supplier to the construction industry after acquiring the material protection business of Syngenta.
MPP also offers stabilizing agents for beverages and is the world’s leading manufacturer of phenolic active ingredients for disinfection. Its production sites are located in Krefeld-Uerdingen and Dormagen (Germany), Jhagadia (India) and Wuxi (China). The business unit is headed by Torsten Derr and currently employs around 300 people.
LANXESS is a leading specialty chemicals company with sales of EUR 7.1 billion in 2010 and currently around 16,100 employees in 30 countries. The company is at present represented at 47 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals. LANXESS is a member of the leading sustainable indices Dow Jones Sustainability Index (DJSI) World and FTSE4Good.