Lanxess announces sale of Envalior stake to Advent in US$1.4B deal

GERMANY – German specialty chemicals company Lanxess has decided to sell its remaining stake in the Envalior joint venture to partner Advent International, with the transaction valued at up to US$1.4 billion. 

The move, effective from April 1, 2026, involves Lanxess exercising its contractual option to offload its 40.94% ownership in the engineering materials firm.

In a statement, Lanxess explained that the base purchase price stands at around US$1.42 billion, subject to adjustments based on Envalior’s earnings performance. 

If the company’s EBITDA over the 12 months leading to the sale date surpasses the initial valuation benchmark from 2023, the price could rise accordingly. 

Conversely, a drop of more than 10% in EBITDA would lead to a proportional reduction. 

The agreement requires Advent to secure financing, and it must acquire at least half the shares if the full amount cannot be covered immediately.

Envalior emerged in April 2023 from the merger of Lanxess’s high-performance materials unit and the engineering materials business Advent acquired from DSM for US$4.2 billion. 

At the time, Lanxess received an upfront payment of US$1.44 billion and contributed assets valued at US$2.75 billion. 

The joint venture now focuses on producing polymers for automotive, electronics, and other sectors, including applications in packaging where durable, lightweight materials help reduce waste.

Company officials noted that if the 2026 sale does not proceed fully, further opportunities arise in 2027 and 2028. 

In the latter year, Advent would be obligated to buy at least half the stake without financing conditions. Additionally, a US$220 million shareholder loan from Lanxess, plus interest, would be repaid proportionally by 2028.

Market response was swift, with Lanxess shares surging up to 10 % in European trading following the announcement, reversing year-to-date declines. 

Analysts pointed out that the stake had been undervalued in prior market assessments, contributing to the positive reaction.

As additional context, Envalior recently advanced its environmental efforts. 

On September 8, 2025, the firm released its inaugural sustainability report, detailing progress in reducing greenhouse gas emissions and expanding bio-based materials.

 Earlier, in August, Envalior launched a roadmap under its “CARES” initiative, aiming to lower carbon footprints in production processes. 

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