Lanxess is expanding its activities in Latin America with its first acquisition in Argentina. The specialty chemicals company’s wholly-owned subsidiary Rhein Chemie has acquired Darmex S.A. - a leading manufacturer of release agents and curing bladders for the tire industry. As a result of the acquisition, Rhein Chemie will become one of the world’s leading providers of release agents for rubber products in a highly fragmented market. It will also acquire Darmex’s bladder technology in Latin America, which is a key production hub for leading tire manufacturers. Darmex’s production sites are located near to Brazil, one of the booming BRIC nations, in which Lanxess has significantly expanded its presence in the last few years. In the coming years, Rhein Chemie plans to expand its bladder production. The release agents and bladders belonging to Darmex will be branded under Rhein Chemie product names. “This acquisition enhances Rhein Chemie’s position as an innovative technology provider to the tire industry and strengthens Lanxess' standing as the world’s leading synthetic rubber company,” said Rainier van Roessel, Board Member of LANXESS. “Darmex’s portfolio of highly-reliable products fits perfectly into our strategy of focusing on tailor-made solutions for our customers in growth markets.” Both parties have agreed not to disclose the purchase price. The transaction will close with immediate effect and does not require prior approval by any authority. Lanxess will finance the acquisition from existing liquidity and expects the transaction to be EPS accretive in 2011. Darmex was founded in 1971 and is privately owned. It expects to achieve sales of USD 30 million in the business year 2010. Brazil represents about 40 percent of Darmex sales, while nearly 60 percent of sales are generated in North and South America. The Buenos Aires-based company has about 200 employees worldwide, located at modern production sites in Argentina (Burzaco and Merlo) and Uruguay (Colonia). Darmex has customers in more than 50 countries and is the only bladder producer worldwide able to supply tire manufacturers at the same time with highly innovative release agents. “We are delighted to be teaming up with Rhein Chemie, whose well-renowned brands and strong standing in Europe and Asia will give our employees the platform to achieve even more success,” said Darmex’s Global Director of Marketing and Sales José Sganga. Rhein Chemie’s chief executive officer Anno Borkowsky said that the acquisition of Darmex will act as a springboard for further investments by the company to strengthen its position in the rapidly expanding BRIC nations. “For example, we are currently considering new facilities to manufacture bladders and polymerbound chemicals in Brazil and mainland China, as well as a new plant for lubricant oil additives in India,” said Borkowsky. In May 2010, Rhein Chemie began construction of a plant in the Nizhny Novgorod region of Russia to produce rubber additives and release agents primarily for the local tire and technical rubber market. Edited by Constanze Schmitz
