January 12, 2021
LANXESS to acquire disinfection and hygiene solutions provider Theseo
Specialty chemicals company LANXESS plans to further expand its consumer protection business and has entered into exclusive negotiations to acquire the Theseo group, the company announced on January 11.
Headquartered in Laval, Mayenneis, France, the French group is a leading manufacturer of disinfection and hygiene solutions in Europe and Latin America. Theseo’s products are used in particular in livestock farming to prevent and control diseases. It offers an extensive range of disinfection and hygiene solutions for pig and poultry productions.
Additionally, Theseo has a well-positioned portfolio in water hygiene. With the continuous drive towards antibiotic-free livestock production, its products play an ever-growing role in the industry, LANXESS said.
Subject to completion of the transaction, LANXESS will significantly expand its range of products in animal hygiene and will in future be able to offer products for the animal nutrition industry.
Both LANXESS and Theseo expect the transaction to be completed in mid-2021.
"We are focusing on profitable specialty chemicals and here, consumer protection products play an important role. Once we complete the planned acquisition of Theseo, we will yet again expand our high-margin business in this area," said Matthias Zachert, chairman of the board of management of LANXESS AG.
LANXESS plans to finance the acquisition with an enterprise value of approximately €70 million (US$85.1 million) out of cash. In 2020, Theseo is expected to generate sales of around €33 million (US$40.1 million) and an EBITDA in the mid-single-digit million euro range. Within three years following the completion of the planned transaction, LANXESS expects an additional annual EBITDA contribution in the same amount from synergy effects.
With around 100 employees, Theseo has sites in Laval; Wietmarschen, Germany; Hull. The United Kingdom; and Campinas, Brazil. LANXESS intends to integrate the business into its Material Protection Products business unit, where it would complement its portfolio of disinfection and hygiene solutions.
"A successful acquisition of Theseo will allow us to strengthen our position in the field of animal hygiene and to expand our portfolio with further renowned premium products," said Michael Schäfer, head of the Material Protection Products business unit. "The strong presence of Theseo in Europe will drive our business and complement our global presence. We are looking forward to benefiting from experienced employees, technical and regulatory expertise, well-known brands and an established distribution network."