2 September 2009 - German specialty chemicals group LANXESS has successfully completed the acquisitions of the chemical businesses and production assets belonging to Indian company Gwalior Chemical Industries Ltd as well as China's Jiangsu Polyols Chemical Co. Ltd.
The transactions have received the necessary approvals from the anti-trust authorities and Gwalior shareholders. Both transactions have taken economic and legal effect on September 1, 2009.
LANXESS is paying EUR 82.4 million – including debt – for the assets of Gwalior, while the acquisition price for Jiangsu Polyols will remain undisclosed. Both transactions complement the portfolio of LANXESS’ business unit Basic Chemicals, which is one of the leading manufacturers of raw materials for agrochemicals, polymers, surface coatings, and pigments.
“These acquisitions in India and China are further milestones in our company’s long-term growth strategy in the BRIC countries”, said Axel C. Heitmann, Chairman of LANXESS’ Board of Management. “We will start to integrate these two businesses into our group and warmly welcome the new employees into the LANXESS family.”
Gwalior is one of the largest Indian producers of benzyl products and one of the leading global producers of sulphur chlorides for the agrochemicals and pharmaceuticals as well as for the flavor and fragrance industries. In its business year 2008/2009 (ended March 31) the Indian company achieved sales of approximately EUR 57.8 million and currently employs about 400 permanent staff mainly based at its production site in Nagda, Madhya Pradesh state.
Jiangsu Polyols achieved sales of about EUR 10 million in 2008 and currently employs some 170 staff at its facility in Liyang, west of Shanghai. It mainly produces trimethylol propane (TMP) that is used in lubricants, paints, and coatings. LANXESS’s business unit Basic Chemicals is already a major supplier of TMP in China.