Lanxess Sells Final Stake In ENAQUA For 1.2 Billion Euros, Completely Bidding Farewell To Polymer Business

In 2026, it may become the final point for Lanxess to completely bid farewell to the polymer era.

Recently, this German specialty chemicals giant announced its intention to exercise contractual rights to sell its entire 40.94% stake in Envalior to its joint venture partner Advent International, with a transaction base price of approximately 1.2 billion euros. The completion and the percentage of this share sale will be determined by no later than March 2026.

Image source: Lanxess official website

The potential purchase price adjustment depends solely on the performance of the EBITDA of Enhuapower: if the EBITDA of the last twelve months (LTM) before April 1, 2026 (i.e., the current EBITDA) is higher than the EBITDA used for valuation before the establishment of the joint venture (i.e., the historical EBITDA), the purchase price will be increased accordingly; if the current EBITDA is more than 10% lower than the historical EBITDA, the purchase price will be adjusted downward proportionally. The debt situation of Enhuapower is not considered when determining the purchase price of the shares to be sold.

From Bayer's spin-off to a complete exit, Lanxess's "Polymer subtraction

The story of Lanxess began with a famous "subtraction."

In 2004, Bayer Group decided to spin off its chemicals and polymers business, leading to the establishment of Lanxess. The following year, it was listed on the Frankfurt Stock Exchange. Initially, its business covered multiple sectors including specialty chemicals, basic chemicals, rubber, and plastics, with polymers being an important source of revenue.

However, the fluctuations in the market environment, the strong cyclicality of basic chemicals, and the low profit margins gradually made Lanxess realize that transformation is necessary.

The real turning point occurred in 2022.

LANXESS and Advent International have partnered to acquire the engineering materials business (DEM) of Royal DSM in the Netherlands, and will merge it with their own High Performance Materials business unit (HPM) to establish a new engineering materials company, Envalior. LANXESS holds a 40.94% stake, while Advent International holds the remaining shares.

This step is seen by the industry as a key move in Lanxess's "Polymer Stripping Plan."

In April of the following year, Enchali officially started operations, with Lanxess injecting polymer business lines including polyamide and PBT, while retaining its polyurethane systems business — this was its last polymer-related business.

In April 2025, Lanxess sold its "last polymer business" to Japan's UBE Corporation for 500 million euros. With this, Lanxess has essentially exited the polymer market.

Source of the image: UBE Corporation, Japan

Nowadays, selling Enzhali shares is merely putting a period on this long "exit plan."

The special chemicals strategy of Lanxess is becoming increasingly clear.

Lanxess is not simply "selling, selling, selling," but is executing a clear and determined strategic course.​Shift comprehensively towards high-profit, less cyclical specialty chemicals.​​。

The current business structure reveals three core departments:

• Consumer product safety departments (such as flame retardants, cosmetics, and food additives);
• Special Additives Department
• High-performance intermediates department.

These sectors share common characteristics: high technical barriers, strong customer customization, and low impact from macroeconomic fluctuations—this is precisely the "moat" that Lanxess aims to anchor in the future.

The preliminary results of this strategy can also be seen from its financial performance. Despite a 5.2% year-on-year decline in sales in 2024, its EBITDA grew by 19.9%, reaching 614 million euros, and net profit significantly improved. Behind this is the combined effect of product structure optimization and cost control.

3. LANXESS"Peel off but not far away"The chips

Envalior, an engineering materials giant jointly incubated by LANXESS and Advent International, has an annual sales of approximately 4 billion euros. It has 18 production sites and 14 research and development centers. Its product line covers PA6, PA66, PBT, PPS, and Tepex.^®Composite materials, etc., are widely used in fields such as automotive and electrical electronics.

LANXESS has not completely severed its ties with polymers, but has retained a certain degree of influence and revenue flexibility through equity holdings. The sale price of the shares is not fixed but is linked to Envalior's EBITDA performance, reflecting LANXESS's continued optimism about the future value of this asset.

On September 23, 2025, Enzali announced the grand opening of its integrated first strategic hub focused on China and radiating across Asia - the Shanghai Hongqiao Office and Enzali Experience Co-Creation Center. The launch of this center is a strong demonstration of Enzali's commitment to "being close to the local market and customers in China," which will accelerate regional management efficiency and innovation responsiveness, continuously deepening customer value in the Asia-Pacific region.

Ribbon-cutting ceremony for the opening of the Envision Digital Hongqiao office and China Experience Co-creation Center (Image source: Envision Digital)

 4. Global chemical giants are all "Refocus

Lanxess's withdrawal is not an isolated case.

In recent years, German companies BASF and Covestro have also been continuously adjusting their business structures, divesting some of their polymer and basic chemicals businesses, and focusing more on high-performance materials, new energy materials, and sustainable development.

The Japanese company UBE acquired Lanxess's polyurethane business, recognizing its application capabilities in high-value-added fields such as semiconductor packaging, which aligns closely with its specialty chemicals strategy.

This is an industry consensus:​“"Comprehensive"Not as good as ""Precision and Strength"​​。

Through a series of sales and restructuring, Lanxess has obtained a significant amount of cash to reduce its debt. Its net financial debt decreased from €2.381 billion in 2024 to €2.069 billion by the second quarter of 2025, significantly optimizing the balance sheet.

However, challenges still exist:

• The global economic uncertainty is increasing, and European chemical companies are generally facing pressures such as weak demand and high energy costs.
• The specialty chemicals sector, although having high profit margins, is also facing increasing competition.
• Lanxess still needs to continuously invest in research and development, digitalization, and low-carbon technologies to maintain competitiveness.

Conclusion: A risky bet or a redemption?

From independence from Bayer to a complete exit from polymers, Lanxess has spent twenty years undergoing a transformation of identity. It is no longer a comprehensive chemical company but a specialty chemicals enterprise focused on high value-added areas.

Lanxess has made its choice.

Editor: Lily