Suez completes acquisition of Lanxess RO membrane portfolio
French water technology & solutions major Suez has completed the sale of the reverse osmosis (RO) membrane business of German specialty chemicals company Lanxess.
With this acquisition, Suez said it has integrated a new complementary RO membranes technology and the membranes will complete the offer of its water technologies & solutions’ division. It will also enable Suez to provide customers with greater support in the area of water treatment. It will also expand both the French company’s offer and its production capacity and reinforce its growth in line with its ‘Shaping SUEZ 2030’ strategic plan.
Lanxess’ RO product line’s acquisition includes the RO membranes product line and the production facility located in Bitterfeld, Germany.
“We welcome this acquisition, which follows the deployment of our ‘Shaping SUEZ 2030’ strategic plan. In line with our strategy of growth in industrial markets and investments in high value-added activities, we are strengthening our reverse osmosis membrane offer in order to pursue our international development in the fast-growing industrial water market”, said Suez Chief Executive Officer Bertrand Camus.
The completion of the transaction expands Suez’s international capacities and expertise in producing RO membranes and this will further enable the Group to meet the growing need for brackish water membranes, it said in an official statement.
As of January 1, 2021, the Lanxess production facility as well as research facilities in Bitterfeld as well as all its employees were transferred to Suez.
For Lanxess too, the sale of the unit was part of reorganiziing its water treatment technologies business. The German company said it will continue to develop its portfolio and focus on the ion exchange resins business as it intends to grow in here primarily in markets for high-end applications.
“The membrane business no longer fits in with our strategic focus on specialty chemicals. We are convinced that under the Suez umbrella, the business has the necessary conditions to develop its full growth potential in the future”, said Chairman of the Board of Management of Lanxess Matthias Zachert in July 2020 while announcing the realignment of the company’s water business.
The RO membranes play an important role in the treatment of brackish and seawater. Suez has been strengthening its industrial water portfolio through the inorganic route over the past few years.
Both companies have not disclosed the acquisition price. In 2019, the RO membrane business generated sales in the low double-digit million euro range for Lanxess.
