Nexeo buys Mexico's Ultra Chem

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Materials distributor Nexeo Solutions has made an international deal for the second time in two months, this time acquiring Mexican distribution firm Ultra Chem S de RL de CV for an undisclosed price.

Plastics-related products distributed by Mexico City-based Ultra Chem include polycarbonate, ABS and SAN resins, as well as plastic additives such as PVC stabilizers, antioxidants and foaming agents. The 17-year-old firm also distributes polyurethanes for flexible foam products, as well as a range of specialty chemicals.

Ultra Chem’s line card includes 20 suppliers, including such global firms as Dow Chemical Co., BASF SE, DSM NV and Lubrizol Corp. In a March 9 news release, officials with Nexeo in The Woodlands, Texas, said that the Ultra Chem acquisition “reflects [Nexeo’s] continued focus and commitment to expand its presence in specialty chemicals.”

“Acquiring Ultra Chem … expands our overall specialty mix and extends our chemical reach into Mexico,” President and CEO David Bradley said in the release. “Ultra Chem is a strong cultural fit with complementary end markets and current margins that are immediately accretive.”

The announcement comes just a few weeks after Nexeo acquired part of the DSM NV business of German resin distributor K.D. Feddersen Norden AB. That deal includes resin inventory and accounts of customers who had been buying materials made by DSM — a Dutch materials supplier — from Feddersen in parts of northern Europe.

Nexeo distributes resins, compounds and concentrates for more than 20 suppliers, including ExxonMobil Chemical and LyondellBasell Industries. Plastics accounted for almost 52 percent of Nexeo's total sales in the fourth quarter of 2016.