Japanese chemical group UBE Corporation has agreed to acquire Lanxess' Urethane Systems business for approximately €460 million, marking the German company's complete exit from the plastics market. The transaction, expected to close in the first half of 2025, will transfer a polyurethane and synthetic resin portfolio with five global production sites and technical centers in the US, Europe, and China. For overseas buyers in coatings, adhesives, and specialty chemicals, this signals a shift in supply-chain ownership and potential changes in product sourcing dynamics.
Transaction details
The purchase price of around €460 million covers Lanxess' Urethane Systems division, which includes five production sites worldwide and technical centers in the US, Europe, and China. The business employs approximately 400 people and is expected to generate net sales of roughly €265 million for the fiscal year ending December 2024. The deal is subject to regulatory approvals.
Buyer profile: UBE Corporation
Listed on the Tokyo Stock Exchange, UBE Corporation has been involved in chemical production and processing since 1897. Its operations range from basic chemicals to advanced high-performance products. The UBE Group comprises about 70 companies with approximately 8,000 employees globally and annual sales of around €2.9 billion. This acquisition strengthens UBE's position in polyurethane systems and synthetic resins.
Seller context: Lanxess' strategic shift
Lanxess, headquartered in Cologne, Germany, reported 2023 sales of €6.7 billion and employs about 12,600 people across 32 countries. The company's core business now focuses on chemical intermediates, additives, and consumer protection products. The divestiture of Urethane Systems completes Lanxess' withdrawal from the plastics market, following its earlier joint venture with Advent for high-performance engineering plastics, now operating as Envalior.
What buyers should watch
Overseas importers and distributors of polyurethane and synthetic resin products should monitor the integration timeline and potential changes in product specifications, pricing, or supply continuity. The transaction is expected to close in the first half of 2025, pending regulatory approvals. Market sources indicate there was at least one other bidder, suggesting competitive interest in these assets. Buyers may want to establish direct contact with UBE's commercial teams to understand post-acquisition supply arrangements.
Compliance and logistics signals
The involvement of law firms Baker McKenzie (advising UBE) and Hengeler Mueller (advising Lanxess) indicates a thorough cross-border legal and regulatory review. Baker McKenzie's team included offices in Tokyo, Frankfurt, and multiple global locations, reflecting the international scope of the deal. Buyers should prepare for potential changes in export documentation, product registration, and supply agreements as ownership transfers from a German to a Japanese parent company.
Source: Read the original report | Published: October 09, 2024