LEVERKUSEN (dpa-AFX) - Lanxess AG (LNXSF.PK), a German specialty chemicals company, announced Thursday that it has signed a contract to sell its Urethane Systems business to UBE Corp. for enterprise value of 460 million euros.
The expected proceeds in the deal is around 500 million euros. LANXESS will use the proceeds to reduce its net debt.
The sale is expected to close in the first half of 2025, subject to the approval of the relevant authorities.
With the sale, 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 will take over all operations from LANXESS with a total of around 400 employees.
The Urethane Systems business generated sales of around 250 million euros in the last twelve months ended June 2024.
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