LANXESS to expand its animal hygiene products portfolio with Theseo Group acquisition
Technical expertise and broad product portfolio will strengthen LANXESS’ position in growth market of animal hygiene
Source: public domain
Specialty Chemicals Company LANXESS intends to further expand its Consumer Protection business and has entered into exclusive negotiations to acquire the Theseo group. The French group, headquartered in Laval, is a leading manufacturer of disinfection and hygiene solutions in Europe and Latin America. The products are used in particular in livestock farming to prevent and control diseases. Subject to completion of the transaction, LANXESS will significantly expand its range of products for the animal hygiene and will in future also be able to offer products for the animal nutrition industry.
Prior to the execution of the envisaged transaction, the usual French employee information and consultation process will be followed. Furthermore, the transaction is subject to antitrust clearance. Thereupon, the parties expect the envisaged 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 envisaged acquisition with an enterprise value of approximately EUR 70 million out of cash. In 2020, Theseo is expected to generate sales of around EUR 33 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. The envisaged acquisition will already be earnings per share* accretive in the first fiscal year after its completion.
Theseo offers an extensive portfolio of disinfection and hygiene products for all areas of pig and poultry. Herein, LANXESS sees strong growth prospects due to rising biosecurity requirements. Theseo also has a well-positioned portfolio in water hygiene as well as animal nutrition. With the continuous drive towards antibiotic free meat, these products play an ever-growing role in livestock production.