Lanses Negotiates Acquisition of French Hygiene Solutions Company 'TCIO'

[Asia Economy Reporter Hwang Yoon-joo] Global specialty chemicals company LANXESS has entered exclusive negotiations to acquire Theseo Group, a specialist in animal disinfectants and hygiene solutions, to strengthen its consumer protection products business.

Headquartered in Laval, France, Theseo Group is a leading company in disinfection and hygiene solutions, specializing in livestock disease prevention and biosecurity solutions. Through the acquisition of Theseo, LANXESS expects not only to expand its portfolio of animal hygiene and disinfectant products in the growing market but also to supply products for the animal feed industry.

Matthias Zachert, Chairman of LANXESS, said, "Consumer protection products play a central role in LANXESS's growth strategy focused on high-margin, high-quality specialty chemicals," adding, "The acquisition of Theseo will further strengthen our high-margin consumer protection products business."

The acquisition is expected to be completed by mid-2021 after necessary procedures such as antitrust reviews, with an acquisition price of approximately 70 million euros. As of 2020, Theseo Group anticipates sales of about 33 million euros and EBITDA (earnings before interest, taxes, depreciation, and amortization) in the multi-million euro range.

Theseo has production facilities in Laval, France; Bitmarschen, Germany; and Campinas, Brazil, and employs around 100 people.

LANXESS plans to integrate Theseo's business into its Functional Protection Products division to enhance its portfolio of disinfectants and hygiene solutions. In particular, by adding Theseo's strong position in the European market, well-known premium brand power, skilled workforce, technical and regulatory expertise, and distribution network, LANXESS expects to significantly strengthen its competitiveness in the animal disinfectant and hygiene sector.

Theseo offers a complementary product portfolio to LANXESS with a wide range of disinfectants and hygiene solutions for pigs and poultry, which is expected to create mutual synergy effects and drive high growth by responding to the rapidly increasing global demand for biosecurity. It also holds a strong position in the water hygiene and animal feed markets, and is expected to lead continuous growth in the livestock industry in line with the trend toward antibiotic-free meat popularization.

About 660 employees work in LANXESS's Functional Protection Products division, which operates production facilities in Krefeld-Uerdingen and Dormagen, Germany; Sudbury, UK; Pittsburgh and Memphis, USA; Jarinu, Brazil; Jhagadia, India; Changzhou, China; and Singapore.

The Functional Protection Products division supplies raw materials (active ingredients), preservatives, and disinfectants as customized solutions for various industries including disinfection, wood protection, paints and coatings, construction, water treatment, and food and beverage. It also provides reliable technical consulting, regulatory registration support, and differentiated research and development services.