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

Bayer spinning off plastics business

September 18, 2014 8:49 am ET

Bayer AG will spin off its MaterialScience plastics group into a separate, publicly-traded company within the next 12 to 18 months.    More

Image

Investor group wants DuPont to split in two

September 18, 2014 7:37 pm ET

Investment firm Trian Fund Management LP is calling for plastics and chemicals giant DuPont Co. to split itself into two firms, one of which would...    More

Image

Minnesota receives grant to help develop new bioplastics

September 17, 2014 4:08 pm ET

The University of Minnesota has received a $20 million grant to fund the development of new types of bioplastics.    More

Badger buys competitor Joseph Homa

September 17, 2014 4:04 pm ET

Badger Plug Co. has extended its protective plugs customer base by acquiring and closing a rival, Joseph Homa Consultants Inc. of Montreal.    More

Image

China's Polymax Elastomer launches U.S. production in Illinois

September 17, 2014 3:35 pm ET

Chinese materials maker Polymax Elastomer Technology Co. Ltd. has opened a North American production site and headquarters in Waukegan, Ill.    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

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

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

More Events