Speciality chemicals company LANXESS has partnered with Advent International to form a joint venture focused on engineering materials, effective April 1, 2023. With the formation of this joint venture, LANXESS aims to expand its capabilities in engineering materials, leveraging Advent’s expertise in the field. The joint venture will benefit from DSM’s technological know-how and LANXESS’s established customer base, thereby creating new opportunities for growth and innovation in the speciality chemicals industry.
LANXESS, a prominent speciality chemicals company, has formed a joint venture with private equity investor Advent International, focused on engineering materials. The partnership, effective on April 1, 2023, combined DSM’s Engineering Materials business and LANXESS’s former High-Performance Materials business.
Under the terms of the deal, LANXESS will hold approximately 40 percent of the joint venture, while Advent will hold the remaining 60 percent. In addition, LANXESS received a cash payment of around EUR 1.3 billion on March 31, which the company intends to use primarily to reduce its debt and strengthen its balance sheet. LANXESS has also pledged to provide a loan of EUR 200 million as financial support for the joint venture.
LANXESS, which recorded sales of EUR 8.1 billion in 2022, operates in 33 countries and has 13,100 employees. The company’s core business focuses on developing, manufacturing, and marketing chemical intermediates, additives, and consumer protection products.
In recognition of its commitment to sustainability, LANXESS has been listed in the leading sustainability indices, including the Dow Jones Sustainability Index (DJSI World and Europe) and FTSE4Good.
