LANXESS aims to acquire disinfection and hygiene solutions provider Theseo

LANXESS will significantly expand its range of products for the growth market animal hygiene

LANXESS intends to further expand its Consumer Protection business and has entered into exclusive negotiations to acquire the Theseo group. The French group, headquartered in Laval, is a leading manufacturer of disinfection and hygiene solutions in Europe and Latin America.

The products are used in particular in livestock farming to prevent and control diseases. Subject to completion of the transaction, LANXESS will significantly expand its range of products for the growth market animal hygiene and will in future also be able to offer products for the animal nutrition industry.

Prior to the execution of the envisaged transaction, the usual French employee information and consultation process will be followed. Furthermore, the transaction is subject to antitrust clearance. Thereupon, the parties expect the envisaged transaction to be completed in mid-2021.

“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 of the Board of Management of LANXESS AG.

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. The envisaged acquisition will already be earnings per share (EPS) accretive in the first fiscal year after its completion.