Lanxess to Acquire Chemtura for $2.7 Billion
September 25 2016 - 8:50PM
Dow Jones News
Specialty chemical company Lanxess AG said Sunday it is buying
Chemtura Corp. in a deal with an enterprise value of around €2.4
billion ($2.7 billion).
Lanxess said combining the two companies would expand its
business activities in additives for lubricants and flame
retardants. Lanxess said the value of the deal works out to about
$33.50 per share of Chemtura. That represents an 18.9% premium to
the stock's closing share price of $28.18 on Sept. 23, Chemtura
said.
Lanxess, based in Cologne, Germany, intends to fund the deal
using existing liquidity and issuing new debt. The company said it
has secured bridge financing, which will quickly be refinanced via
senior bonds and a hybrid bond. The deal is expected to close
around mid-2017.
Lanxess also said its announced share buyback of around €200
million won't be pursued further.
Craig A. Rogerson, CEO of Philadelphia-based Chemtura, said the
deal "provides premium value to our shareholders and benefits our
customers and employees by making Chemtura part of a larger,
stronger global enterprise."
Lanxess CEO Matthias Zachert said, "With this acquisition, we
are forming a major global player in the field of additives and are
significantly strengthening our already profitable portfolio."
(END) Dow Jones Newswires
September 25, 2016 20:35 ET (00:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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