IFF has announced an agreement to sell its Microbial Control business unit to Lanxess. The transaction is valued at $1.3 billion and the cash proceeds net of taxes and expenses will be primarily used to reduce outstanding debt.
IFF’s Microbial Control business unit is a global leader that provides innovative and sustainable solutions. With a presence across a broad range of industry segments and an estimated 2021 annual revenue of approximately $440 million and an EBITDA of approximately $85 million, Microbial Control is composed of approximately 270 colleagues with two production facilities in the United States. The business unit specializes in offering preservation and hygiene solutions for a wide array of industrial and consumer applications, including paints and coatings, building materials, animal biosecurity, personal care and home care. It is also active in the treatment and preservation of industrial water used in production, cooling towers and pulp and paper. Microbial Control joined IFF through the combination with DuPont Nutrition & Biosciences earlier this year.
IFF and Lanxess are working closely to ensure a seamless transition and expect to close in the second quarter of 2022, subject to customary closing conditions, including satisfaction of applicable consultations requirements, and regulatory clearances.
IFF chairman and CEO, Andreas Fibig, said, “Today’s announcement is part of a strategic portfolio review and is guided by our commitment to enhance long-term shareholder value. This transaction is driven by the best-owner mindset and allows us to focus on our core businesses as we strengthen our balance sheet and maximize shareholder return. The divestiture also enhances IFF’s financial profile, providing growth acceleration and higher margins.”
Mr. Fibig continues, “We appreciate the contributions of our Microbial Control colleagues, who have built a strong business based on innovation, passion and commitment. We will work closely with Lanxess to have a successful transition and look forward to Microbial Control’s future under Lanxess’ ownership, a strong match for their combined growth.”