LANXESS to Divest Urethane Systems to UBE Corporation

LANXESS Aktiengesellschaft has entered into a contract to sell its Urethane Systems business to UBE Corporation for an enterprise value of €460 million. The expected proceeds are around €500 million, aimed at reducing the company’s net financial debt. The leverage ratio is expected to decrease by approximately 0.5x.

This disposal marks LANXESS’s exit from its last remaining polymer business. The Urethane Systems business encompasses five manufacturing sites globally and application laboratories in the USA, Europe, and China. The acquisition means UBE Corporation will absorb around 400 employees.

The transaction awaits approval from relevant authorities, with completion anticipated in the first half of 2025. The Urethane Systems unit generated roughly €250 million in sales over the last twelve months leading up to June 2024.