Private equity firm SK Capital buying Chemtura's antioxidant business

By Frank Antosiewicz
Correspondent

Published: November 12, 2012 6:00 am ET

Related to this story

Topics Materials, Mergers & Acquisitions, Suppliers

NEW YORK (Nov. 12, 2:15 p.m. ET) — Private equity firm SK Capital Partners plans to acquire the antioxidant and UV stabilizer solutions business of Chemtura Corp., of Middlebury, Conn.

New York-based SK Capital Partners said it had signed an asset purchase agreement to buy the business for about $200 million. The transaction is expected to close at the end of 2012 or early 2013.

“Their business is a global business. They provide additives to the plastics and rubber industries,” said Barry Siadat, a managing director at SK Capital Partners, in a telephone interview.

“We will build around it. We see some strong possibilities, especially in antioxidants,” he said.

Siadat said the deal will include six plants, including two in the United States, two in Europe, one in the Middle East and one in Asia. It also includes shared facilities in Canada, Mexico, Brazil, Italy and Taiwan.

The business is a supplier of additives including antioxidants, antiozonants, intermediates and inhibitors, polymer modifiers and UV stabilizers.

Siadat said the business unit’s heritage draws from previous associations with Uniroyal, Great Lakes Chemical Corp and GE Plastics, and that SK Capital estimates it could generate revenues of more than $500 million a year.

He said it will operate as separate business and that a new name will be announced at a later date.

“We believe that the transition from a non-core business within a large public company to a stand-alone organization will enable improved execution and a renewed emphasis on growth. Management has done an excellent job of redefining the businesses’ strategy and successfully repositioning it as a strategic partner and solutions provider to customers.” said SK Capital managing director Jack Norris, in a news release.

“We are excited about teaming with SK Capital to expand and accelerate our growth and innovation initiatives. SK Capital’s track record of successfully completing corporate carve-outs and investing in companies in the polymer and related additives markets will ensure a smooth transition and position us well to realize our long-term strategic objectives,” said Peter Smith, president of the Chemtura antioxidant and IV stabilizer business, in a statement.

SK Capital focuses on companies in the specialty materials, chemicals and healthcare sectors. Its portfolio companies generate revenues of over $3 billion annually and employ more than 3,400.

Latham and Watkins LLP acted as legal counsel to SK Capital.

Chemtura said the deal will simplify its portfolio and the money will be used to repay debt and invest in continued growth.


Comments

Private equity firm SK Capital buying Chemtura's antioxidant business

By Frank Antosiewicz
Correspondent

Published: November 12, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Swedish compounder makes first North American plastics acquisition

December 22, 2014 10:19 am ET

Swedish rubber compounder Hexpol AB has made its first North American plastics acquisition, buying the plastics compounding business of RheTech Inc....    More

China's Jinming honored as global partner by ExxonMobil

December 22, 2014 12:08 pm ET

Guangdong Jinming Machinery Co. Ltd. has been recognized as a global strategic development partner by ExxonMobil Chemical Co.    More

Image

The return of HPM's big presses

December 19, 2014 11:47 am ET

HPM is back in big injection molding machines.    More

Image

Ferro sells another piece of its plastics business

December 19, 2014 3:33 pm ET

Ferro Corp. has sold its North American polymer additives business to a private equity firm for $154 million in cash.    More

Image

Alex Brands buys iconic Shrinky Dinks toys

December 19, 2014 3:15 pm ET

First Slinky, now Shrinky Dinks. What will toy and games investment firm Alex Brands buy next?    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events