Specialty chemicals company Lanxess, Cologne, Germany, announced on Nov. 15 that it has signed an agreement with Belgium-based Solvay Chemical Co. to acquire Solvay’s U.S. phosphorus chemicals business, which includes a production site in Charleston, S.C. Lanxess said the acquisition will expand its Additives segment and “fully complements” its strategy to grow its business in North America, Asia, and in mid-sized markets.
The transaction is expected to close in the first half of 2018, subject to customary closing conditions and regulatory approvals. The Solvay production site in Charleston includes six production units, where roughly 90 employees manufacture phosphorus chloride and other derivative products such as flame-retardants and intermediates for the agrochemical industry. The business posts annual sales of around €65 million.
“With this acquisition, we are benefiting from a North American platform for phosphorus-based specialty chemicals – a key component of our additive business – and are able to further drive our growth in this key region,” said Anno Borkowsky, general manager of the Additives business unit at Lanxess.
Solvay reported that all Charleston employees will be transferred to Lanxess as part of the deal. “The divestment will strengthen Solvay’s focus and resources on our existing leadership positions in phosphine gas, phosphine derivatives, and phosphorous specialties,” said Michael Radossich, president of Solvay’s Technology Solutions Global Business Unit. “With Lanxess, our Charleston employees and our customers will have a buyer with a strategic, geographic, and technical fit to expand the business and its offerings.”
Lanxess has 74 production sites globally, and is primarily focused on the development, manufacturing, and marketing of chemical intermediates, additives, specialty chemicals, and plastics. The company posted sales of €7.7 billion in 2016, and currently has about 19,200 employees in 25 countries. Lanxess’s Additives business has annual sales of around €2 billion and roughly 2,000 employees globally.
Solvay is a multi-specialty chemical company headquartered in Brussels, with approximately 27,000 employees in 58 countries. Solvay recorded net sales of €10.9 billion in 2016.