Lanxess to buy Chemtura for $2.5 billion

Abstract

German specialty chemical producer Lanxess has agreed to buy Philadelphia-based Chemtura, a maker of lubricant additives, plastics flame retardants, urethanes, and organometallics, in a cash deal worth roughly $2.5 billion. The $33.50 per share Lanxess will pay represents an 18.9% premium over Chemtura’s stock price on Sept. 23, the business day before the deal was announced. The acquisition, the largest in Lanxess’s history, was driven by the company’s desire to grow its additives business and push further into specialty chemicals. It marks a turn to growth after a major restructuring that spanned 2014–15 under new CEO Matthias Zachert. Zachert cut costs and sold a 50% stake in the firm’s synthetic rubber business to Saudi Aramco to lessen its exposure to the volatile rubber market. Chemtura’s additives for lubricants and plastics will complement the rubber additives made by Lanxess’s Rhein Chemie business. Overall, Lanxess will gain a greater presence in profitable