Specialty chemicals company LANXESS successfully finalized the sale of its urethane systems business to Japan-based UBE Corporation. UBE, a global manufacturer of chemical products, is listed on the Tokyo Stock Exchange.
Regulatory Approvals Secured
Following the initial announcement in October 2024, all relevant antitrust authorities granted the required approvals, allowing the transaction to proceed without delay.
Financial Terms and Use of Proceeds
LANXESS received approximately €500 million in gross cash proceeds from the sale. The deal reflects an enterprise value of €460 million. The company plans to use the proceeds to redeem its €500 million benchmark bond, which is due to mature in May 2025. As a result, LANXESS expects to reduce its leverage ratio (net financial debt to EBITDA pre) to around 3x.
Strategic Milestone Achieved
“With this sale, we conclude our portfolio transformation and at the same time achieve a substantial further reduction of net financial debt,” stated Matthias Zachert, Chairman of the Board of Management of LANXESS AG.
Looking Ahead
As per the press release, the transaction marks a significant step in LANXESS’ long-term strategy to streamline its portfolio and strengthen its financial position, as the company continues to focus on its core specialty chemicals business.
