Specialty chemicals company LANXESS announced that it has completed the sale of its Urethane Systems business to Japanese UBE Corp. The sale was completed on April 1, 2025. UBE is a global manufacturer of chemical products and listed at the Tokyo Stock Exchange.

LANXESS reports that all relevant antitrust authorities had granted the necessary approvals for the transaction, which was announced in October 2024. With completion of this transaction, LANXESS has received gross cash proceeds of approximately €500 million (approx. $548 million). The enterprise value amounts to €460 million (approx. $504 million).

LANXESS intends to use the proceeds to redeem its €500 million benchmark bond which matures in May 2025. The leverage ratio (net financial debt / EBITDA pre) will be reduced to ~3x.

“With this sale, we conclude our portfolio transformation and at the same time achieve a substantial further reduction of net financial debt”, said Matthias Zachert, chairman of the Board of Management of LANXESS AG.

Learn more about LANXESS at lanxess.com/en-us.