Specialty chemicals company Lanxess (Cologne, Germany) recently completed a deal to acquire Itibanyl Produtos Especiais Ltda. (IPEL), a São Paulo, Brazil-based protective coatings business. The transaction is scheduled to be finalized in the first quarter of 2020, pending the approval of the responsible antitrust authorities.
As one of Brazil’s leading manufacturers of biocide—a chemical substance used to protect materials from infestation, destruction, and decay caused by harmful microorganisms—IPEL generated sales in the lower double-digit million-euro range in 2018. “The acquisition fits perfectly with our strategic focus on profitable specialty chemicals,” says Rainier van Roessel, member of the Lanxess Board of Management.
The IPEL acquisition will aid Lanxess, specifically its material protection products business unit, by reinforcing its global presence and directly serving its customers in the South American market. “With IPEL’s business, we are expanding our global production network and strengthening our position in South America,” says Oliver Kretschik, head of the biocides business line in the material protection products unit. “IPEL also has a strong customer network that will soon be able to benefit from our combined product portfolio and regulatory expertise.”
In acquiring IPEL, Lanxess will be managing approximately 100 employees, production and laboratory facilities in Brazil, and access to strategic intermediate products. These products include preservatives and fungicides for process control in water treatment, as well as active ingredients for disinfection and cleaning agents.
The Lanxess material protection products unit employs about 540 employees with production sites in China, Germany, Great Britain, India, Singapore, and the U.S.
Source: Lanxess, www.lanxess.com.