Chemicals firm LANXESS revealed plans Tuesday to purchase International Flavors & Fragrance’s (IFF) Microbial Control business for $1.3 billion. The deal will transform LANXESS into one of the world’s biggest providers of microbial control solutions and bolster its existing specialty chemicals portfolio.
The parties signed an agreement on the transaction on August 23. IFF Microbial Control offers antimicrobial active ingredients and formulations for material protection, preservatives, and disinfectants. Products made by the business are used in personal care and household products, industrial water treatment, paints and coatings, and other applications.
“With IFF’s microbial control business, we can now expand our portfolio of active ingredients, enabling us to offer our customers additional application-oriented solutions. In addition, we are strengthening our value chain,” said Michael Schaefer, head of LANXESS’ Material Protection Products business unit, in a company release. “The business also gives us access to new technologies and enhances our regulatory position through additional registrations.”
IFF Microbial Control currently has two US production facilities, including a site in St. Charles, LA and another in Institute, WV. About 270 people work for the business. Once the deal is completed, IFF Microbial Control will become a part of LANXESS’ Material Protection Products unit.
“This transaction is driven by the best-owner mindset and allows us to focus on our core businesses as we strengthen our balance sheet and maximize shareholder return. The divestiture also enhances IFF’s financial profile, providing growth acceleration and higher margins,” IFF Chairman and CEO Andreas Fibig said in a separate company release.
LANXESS and IFF expect the transaction to close in the second quarter of 2022.