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Lanxess makes second US buy in Verichem

Lanxess has acquired Verichem, a privately owned US maker of biocides, on undisclosed terms

US

Lanxess has acquired Verichem, a privately owned US maker of biocides, on undisclosed terms and is integrating it into its Material Protection Products (MPP) business unit. The company said that this will "significantly bolster its position in the US material protection market and broaden its global biocide manufacturing network".

Verichem has its production site near Lanxess's US headquarters in Pittsburgh, employs about 20 people and turned over about $10 million last year. It brings a complementary portfolio of EPA-registered biocides and active ingredients that are variously used to protect coatings, adhesives, construction materials, pulp and paper.

MPP business head Torsten Derr and other senior executives visited Verichem as the deal went through

Lanxess's MPP business unit has sites in Germany, India and China, employing 300. It is said to be one of the world's leading suppliers of biocides, having previously acquired the material protection business of Syngenta, which is particularly strong in construction products. It also makes stabilising agents for beverages and is the world's largest manufacturer of phenolic active ingredients for disinfection.

This was Lanxess's second US foray in recent months, having earlier completed the acquisition of Unitex Chemical of Greensboro, North Carolina, also on undisclosed terms. Unitex will now become part of the Functional Chemicals business unit. Prior to this, Lanxess had no manufacturing assets in North America other than Saltigo's facility in Redmond, Washington state.

Unitex, which employs 40 and had sales of $30 million in 2010, has capacity of about 50,000 tonnes/year of phthalate-free plasticisers - mainly benzoates, citrates and trimellitates - and other speciality products, including flame retardants. Lanxess was already active in the phthalate-free plasticisers market, which is estimated at €1.3 billion/year and growing at 7%/year. It recently concluded a development agreement in the field with BioAmber.

 

 

From Online Issue: December 2011