LANXESS, a global specialty chemicals company, has successfully completed the sale of its Urethane Systems business to Japan-based UBE Corporation, effective April 1, 2025. UBE, a renowned chemical manufacturer listed on the Tokyo Stock Exchange, acquired the business after receiving all necessary approvals from relevant antitrust authorities. The transaction was originally announced in October 2024 and represents a significant step in LANXESS' strategic portfolio transformation.

With the completion of this sale, LANXESS has secured gross cash proceeds of approximately €500 million, corresponding to an enterprise value of €460 million. The company intends to allocate these proceeds toward redeeming its €500 million benchmark bond, which is due to mature in May 2025. This move is expected to strengthen LANXESS' financial position by reducing its leverage ratio (net financial debt to EBITDA pre) to around three times.

The sale aligns with LANXESS' broader goal of optimizing its business portfolio and enhancing its financial flexibility. Over the past few years, the company has actively reshaped its operations to focus on core competencies and high-growth segments. The divestment of the Urethane Systems business marks the final step in this transformation, allowing LANXESS to direct its resources toward strategic priorities.

Matthias Zachert, Chairman of the Board of Management at LANXESS AG, emphasized the importance of the sale in achieving the company's financial and operational objectives. "With this transaction, we successfully complete our portfolio transformation while achieving a substantial reduction in our net financial debt," he stated. Zachert also highlighted that this move positions LANXESS for long-term stability and growth by ensuring a more resilient financial structure.

UBE Corporation, the acquiring company, is a global leader in chemical production with a diverse product portfolio that includes advanced materials, specialty chemicals, and high-performance polymers. The addition of LANXESS' Urethane Systems business is expected to strengthen UBE’s market presence and enhance its capabilities in polyurethane technology.

This transaction underscores LANXESS' commitment to strategic decision-making, allowing it to streamline operations, reduce debt, and focus on areas with higher profitability and growth potential. By reinforcing its financial foundation, the company is well-positioned to navigate future market dynamics and capitalize on emerging opportunities in the specialty chemicals sector.

LANXESS is a prominent specialty chemicals company that generated sales of €6.4 billion in 2024. With a workforce of approximately 12,000 employees across 32 countries, the company focuses on the development, production, and marketing of chemical intermediates, additives, and consumer protection products. LANXESS has earned recognition for its strong commitment to sustainability, securing top positions in the Dow Jones Best-in-Class Index, as well as in the MSCI ESG and ISS ESG ratings.