Lanxess Corp., a specialty chemicals company based in Findlay, plans to take the products of newly acquired Verichem Inc. on Neville Island and distribute them worldwide, said Lanxess CEO Randy Dearth on Thursday.
Lanxess, the U.S. subsidiary of Germany's Lanxess AG, acquired the local company, which had 2010 sales of about $10 million, for an undisclosed price yesterday. Verichem produces biocides -- chemicals that preserve and protect a variety of products -- but distributes them solely in the United States.
"We are going to open up a whole new world for these products," said Dearth in an interview yesterday. Verichem will be integrated into Lanxess' Material Protection Products business, which already produces biocides.
"We are not a large player but we'd like to increase our market share," he said. "This will allow us to grow."
Lanxess will introduce Verichem's biocides to markets in Europe and Asia. Lanxess AG has "hundreds" of sales people, including about 80 in the United States, and will hire some more "in the very near future," said Dearth.
Biocides are chemicals used to protect coatings, adhesives and construction materials, as well as pulp and paper, by preventing deterioration and discoloring of materials caused by microorganisms. Biocides are registered with the Environmental Protection Agency.
"Biocides touch a lot of different things," said Dearth, noting the American market alone is worth about $1.5 billion a year.
For instance, biocides are found in treated wood at lumber yards, in house paints, in shampoos and detergents, and even in beverages from wine to soft drinks, he said.
Verichem represents Lanxess' second acquisition in the past month. It purchased Unitex Chemical Corp., Greensboro, N.C., for an undisclosed price on Oct. 12. Lanxess expects that Unitex, which had $30 million in sales last year, will strengthen its product line for premium environmentally-friendly plasticizers, a market estimated at $1.8 billion and growing.
"We have consciously made decisions to strengthen our product portfolio by acquisition," said Dearth.
Adding Verichem's 20 employees will give Lanxess more than 300 workers in the Pittsburgh region, including those at its headquarters and a manufacturing plant in Burgettstown.
Separately, parent Lanxess AG yesterday reported record third-quarter results, which it attributed to strong demand for its synthetic rubbers and high-tech plastics.
Net profit rose 31 percent to $210 million on sales of $3.14 billion, up 26 percent from a year ago.
Sales in North America grew by 23 percent from a year ago to $547 million.
