German specialty chemicals company Lanxess is exercising its option to sell its 40.94% stake in engineering materials joint venture (JV) Envalior to its partner, private equity firm Advent International. The base purchase price for the shares is approximately €1.2 billion ($1.4 billion).

The company is exercising its contractual "put option," with the sale potentially finalized by March 2026, and is subject to adjustments based on Envalior's EBITDA performance.

Advent is contractually obligated to acquire either all or half of Lanxess's stake, though its acquisition of the full stake is subject to financing.

If the sale is not fully completed in 2026, Lanxess has the right, starting April 1, 2028, to require Advent to buy at least half of the remaining stake, at which point the financing condition would no longer apply.

The sale also includes the repayment of a €220 million shareholder loan from Lanxess, plus interest

The move, announced on September 23, 2025, will allow Lanxess to exit the plastics joint venture, which was created in 2023 and has faced challenges including weaker-than-expected demand and value write-downs for Lanxess.

Lanxess created Envalior in 2023 by merging its polymer business with DSM's plastics division and is now exercising a contractual option to sell.

Lanxess intends to use the proceeds from the sale to reduce its debt, thereby strengthening its balance sheet.