LANXESS has sold its urethane systems business to UBE Corporation. The enterprise value amounts to EUR 460 million and is expected to generate proceeds of approximately EUR 500 million. With this deal, LANXESS is selling its last polymer business. The press release states that this is a further milestone in the rapid transformation of the company into a pure speciality chemicals company.

The urethane systems business comprises five production sites worldwide and application laboratories in the USA, Europe, and China. UBE Corporation will take over all LANXESS activities and a total of around 400 employees. The urethanes business generated sales of around EUR 250 million in the last twelve months until June 2024.

The transaction is still subject to approval by the relevant authorities. LANXESS expects the transaction to close in the first half of 2025 and will use the proceeds to reduce its net debt. The leverage ratio (net debt/EBITDA pre) is expected to be reduced by ~0.5x.

• Lanxess AG, Cologne, Germany
• UBE Corporation, Tokyo, Japan