Canadian Plastics

Lanxess, Advent to buy engineering materials business from DSM

Canadian Plastics   


Lanxess says the acquired business is one of the leading global suppliers in high-performance specialty materials.

Germany-based specialty chemicals company Lanxess AG and private equity firm Advent International are establishing a joint venture for high-performance engineering polymers by buying Royal DSM’s engineering materials business for 3.7 billion euros (US$4 billion)

The business being acquired represents sales of around 1.5 billion euros (US$1.6 billion), Lanxess officials said in a May 31 news release, and “is one of the leading global suppliers in high-performance specialty materials” that address key market needs in electronics, electrical, and consumer goods.

In addition, Lanxess said it will contribute its high-performance materials (HPM) business unit to the joint venture.

Advent will hold at least 60 percent in the joint venture, the news release continued.


“This move further sharpens [our] business portfolio, which will consist of three specialty chemicals segments once the transaction is completed,” Lanxess officials said. “[We] will use the proceeds of the transaction to reduce debt and to strengthen [our] balance sheet.”

“With the new joint venture, we are forging a strong global player in the field of high-performance polymers,” Lanxess CEO Matthias Zachert said. “The portfolios, value chains and global positioning of the two businesses complement each other perfectly. With its innovative products, the joint venture will be able to play a key role in shaping future developments – for example in the field of electromobility. In Advent, we have a strong and reliable partner with profound experience in the chemical industry and our customer industries.”

The transaction is still subject to approval by the authorities. Closing is expected in the first half of 2023.


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