SK Capital buying Chemtura unit

By Frank Antosiewicz
Correspondent

Published: November 19, 2012 6:00 am ET

Related to this story

Topics In Print

Private equity firm SK Capital Partners plans to acquire the antioxidant and ultraviolet light-stabilizer business of Chemtura Corp. of Middlebury, Conn.

New York-based SK Capital Partners said it has 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 in 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.

The deal will include six plants, including two in the U.S., 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 supplies antioxidants, antiozonants, intermediates and inhibitors, polymer modifiers and UV light stabilizers.

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

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

The unit will operate as separate business and 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,” said Peter Smith, president of the Chemtura unit, in a statement.

“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.”

SK Capital focuses on companies in the specialty materials, chemicals and health-care 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.


Comments

SK Capital buying Chemtura unit

By Frank Antosiewicz
Correspondent

Published: November 19, 2012 6:00 am ET

Post Your Comments


Back to story

Market Reports

Market Data Book - Rankings & Lists

A one-stop download of Plastic News' exclusive annual lists and processor rankings containing essential data including sales, employees, end markets, materials and more.
EXCLUSIVE EXCEL FEATURE: full mailing address details for available plant locations.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Mold Making and Tooling Review and Outlook 2014 North America

This report provides in-depth analysis of the mold and toolmaking market for North America, including discussions of trends, opportunities, threats, the latest developments in production and labor and equipment trends impacting moldmakers.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events