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
Companies & Associations

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

Resin prices remain unpredictable

April 27, 2015 12:23 pm ET

Oil prices leveled off a bit in March, but North American commodity resin prices remained as unpredictable as ever.    More

Image

Dow Chemical bullish about prospect for global polyurethane markets

April 27, 2015 11:17 am ET

MAASTRICHT, THE NETHERLANDS — Glenn Wright, president of Dow Chemical Co.’s polyurethanes and formulated systems business, revealed that...    More

Image

PolyOne launches Geon BIO PVC using soy-based materials

April 24, 2015 11:48 am ET

More than a decade of research is paying off for Battelle Memorial Institute in the form of Geon BIO PVC compounds from PolyOne Corp.    More

Image

Study suggests infants at lower risk from BPA exposure than expected

April 23, 2015 4:58 pm ET

A new study shows that newborn babies may have less risk from bisphenol A exposure than originally thought.    More

Image

Braskem and Odebrecht reconsidering West Virginia plastics project

April 23, 2015 2:54 pm ET

Brazilian firms Braskem and Odebrecht have confirmed that they are re-evaluating Project Ascent, the major plastics and petrochemicals project they ha...    More

Market Reports

North American Thermoformed Packaging Market Outlook & Review 2015

Our annual report provides a thorough review and analysis of economic and political conditions, emerging market trends, packaging design advances, materials pricing and sustainable packaging issues impacting supply and demand in the TP segment. Our analysts identify key drivers of growth and opportunities for processors to remain competitive in the years ahead through innovation, production efficiencies and more.

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

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

Upcoming Plastics News Events

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

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events