Advent scraps buyout of Lanxess jv Envalior; deal worth EUR1.2 bn
An investment vehicle backed by European buyout group Advent, Advent HoldCo, has decided against buying the stake of just under 41% in speciality chemicals firm Lanxess’s engineering materials joint venture Envalior, citing a contractually agreed financing condition that has not been met.
The German specialty chemicals maker said the sale of its stake in Envalior had been called off, one of the first deals dropped since the start on the air war in Iran.
The deal had been announced in September 2025.and if it had gone through would have meant a payout of some EUR1.2 billion for Laxness.
According to a Reuters report, Advent had made the decision in light of a deterioration in the sector and more recently in part due to markets souring in the wake of the Iran conflict.
Even without the proceeds, Lanxess said it was solidly financed and the repayment of a bond due in October 2026 was already ensured.
It added that “the company holds a strong cash position as well as undrawn, firmly committed credit lines totalling more than EUR1.35 billion. Therefore, repayment of the bond maturing in October 2026 is already ensured. The financing instruments are not subject to any financial covenants.”
Lanxess further stated that it remains fully committed to Envalior emphasising that it will “continue to play an active role as a committed joint venture partner”.
According to Lanxess, key drivers of this development include the recovery of the market, synergy effects between the two companies brought into the joint venture as well as consolidation among direct competitors.
Envalior was formed three years ago via a merger of Lanxess' plastic polymers business with the plastics division of Dutch firm DSM, after which Advent took a majority stake.
Advent has the right again to acquire the Lanxess shares again in 2027.
The German chemical sector, the country's third-largest, has struggled for years with an economic slowdown, high energy costs, and supply chain issues.
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