LANXESS to Sell Urethane Systems Business to UBE Corporation

LANXESS signed a contract to sell its Urethane Systems business to Japanese UBE Corporation. The enterprise value amounts to EUR 460 million with expected proceeds of around EUR 500 million. With this transaction LANXESS exits the last remaining polymer business. The Urethane Systems business comprises 5 manufacturing sites globally as well as application laboratories in the USA, Europe and China. UBE Corporation will take over all operations from LANXESS with a total of around 400 employees. The Urethane Systems business generated sales of around EUR 250 million last twelve months June 2024. LANXESS will use the proceeds to reduce its net debt. The leverage ratio (net debt / EBITDA pre) will likely be reduced by approximately 0.5x. The transaction remains subject to the approval of the relevant authorities. LANXESS expects the transaction to close in the first half of 2025. To identify growth opportunities in Thermoplastic Polyurethane Market Report: Trends, Forecast and Competitive Analysis to 2030, please visit https://www.lucintel.com/thermoplastic-polyurethane-market.aspx