Lanxess, Advent to buy DSM's engineering materials business for €3.7bn

Specialty chemicals group Lanxess and private equity firm Advent International have agreed to buy DSM’s Engineering Materials business (DEM) for around €3.7bn.

DEM is a supplier in high-performance specialty materials that address key market needs in electronics, electrical and consumer goods.

Lanxess chief executive officer Matthias Zachert said: "With the new joint venture, we are forging a strong global player in the field of high-performance polymers. 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."

Lanxess said on Tuesday that Advent will hold at least 60% in the joint venture. As part of the transaction, which is expected to close in the first half of next year, Lanxess will have the option to divest its stake in the JV to Advent at the same valuation after three years at the earliest.

At 1000 BST, Lanxess shares were up 10% at €43.08.