Egeria to acquire LANXESS Textile Processing Chemicals business
10 Nov '06
2 min read
Chemicals group LANXESS is divesting its textile processing chemicals business as previously announced. All the activities of the Textile Processing Chemicals (TPC) business unit outside of North America are to be acquired by Dutch investor Egeria and business unit management.
The included business has sales of about EUR 130 million and employs some 330 people. With respect to the North American activities of TPC, other options are being examined.
The sale and purchase agreement with Egeria was signed this morning. The purchase price is EUR 54 million. The completion is expected to take place by the end of the year.
LANXESS had announced its intention to divest this business unit at the Annual Stockholders' Meeting in May 2006, saying it was not large enough to enable LANXESS to play a significant role in the ongoing global market consolidation in the textile chemicals sector. That meant the business unit would not have a secure long-term future under the LANXESS umbrella.
"The business unit has been successfully restructured in recent years, improving its competitiveness and earning power. Therefore, Egeria and the experienced business unit management as the purchasers now have a good foundation for successful future development against the background of the international consolidation taking place in the textile processing chemicals industry," explained LANXESS Management Board Chairman Axel C. Heitmann.
The Dutch investmentfund Egeria was founded in 1997. It focuses on long-term investments in mid-size companies and currently administers a portfolio of roughly EUR 600 million.
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