Specialty chemicals company LANXESS intends to expand its Consumer Protection business and has entered into exclusive negotiations to acquire the Theseo group and the transaction is expected to be completed in mid-2021.

Theseo group is a leading manufacturer of disinfection and hygiene solutions in Europe and Latin America and the products are used in livestock farming to prevent and control diseases.

“We are focusing on profitable specialty chemicals and here consumer protection products play an important role. Once we complete the planned acquisition of Theseo, we will yet again expand our high-margin business in this area,” said Matthias Zachert, Chairman, LANXESS.

LANXESS plans to finance the envisaged acquisition with an enterprise value of approximately EUR 70 million out of cash.

In 2020, Theseo is expected to generate sales of around EUR 33 million and an EBITDA in the mid-single-digit million euro range. Within three years following the completion of the planned transaction, LANXESS expects an additional annual EBITDA contribution in the same amount from synergy effects.

Theseo has about 100 employees and sites in Laval (France), Wietmarschen (Germany), Hull (UK) and Campinas (Brazil). LANXESS intends to integrate the business into its Material Protection Products business unit, where it would complement the portfolio of disinfection and hygiene solutions.

“A successful acquisition of Theseo will allow us to strengthen our position in the field of animal hygiene and to expand our portfolio with further renowned premium products,” said Michael Schäfer, head of the Material Protection Products business unit.

“The strong presence of Theseo in Europe will drive our business and complement our global presence. We are looking forward to benefiting from experienced employees, technical and regulatory expertise, well-known brands and an established distribution network.”

Theseo offers an extensive portfolio of disinfection and hygiene products for all areas of pig and poultry. Herein, LANXESS sees strong growth prospects due to rising biosecurity requirements. Theseo also has a well-positioned portfolio in water hygiene as well as animal nutrition. With the continuous drive towards antibiotic free meat, these products play an ever-growing role in livestock production.