UPDATE: LANXESS exits polymers via sale of urethane business to Japan’s UBE

SINGAPORE (ICIS)–LANXESS is selling its urethane systems business to Japanese chemicals producer UBE Corp for around €500 million, the German specialty chemicals firm said on Thursday.

“With this transaction LANXESS exits the last remaining polymer business,” the company said in a statement.

The enterprise value of the deal amounts to €460 million, with expected proceeds of around €500 million, it said.

The urethane systems business comprises five manufacturing sites globally as well as application laboratories in the US, Europe and China.

UBE will take over the business, which has around 400 employees and generated sales of around €250 million in the year to June 2024.

LANXESS expects the transaction to close in the first half of 2025.

“The sale of Urethane Systems marks another milestone in our fast transformation into a pure-play specialty chemicals company, as we are divesting the last remaining polymer business in our portfolio,” said Matthias Zacher, chairman of the board of management of LANXESS.

“At the same time, we are using the proceeds from the transaction to strengthen our balance sheet by further reducing our net debt,” he added.

(Updates throughout)