LANXESS to Acquire IFF Microbial Control
LANXESS says it has signed an agreement to take over the microbial control business of the U.S.-based International Flavors & Fragrances Inc. (IFF). IFF Microbial Control is a supplier of antimicrobial active ingredients and formulations for material protection, preservatives and disinfectants. According to the company, the products are used in a wide range of applications, particularly in personal care and household products, industrial water treatment as well as paints and coatings.
The transaction is still subject to customary approvals. LANXESS says it expects the transaction to be completed in the second quarter of 2022.
The IFF microbial control business represents sales of around $450 million* and EBITDA of approximately $100 million*. Lanxess says that within four years after the closing of the transaction, the company expects synergies to add approximately $35 million (EUR 30 million**) in EBITDA. The acquisition is expected to be earnings per share accretive already in the first fiscal year after closing.
*Normalized level, i.e. in an average year
**Based on exchange rate of EUR/USD = 1.20.