UPDATED: Germany-based oleochemicals producer Peter Greven Group has hiked its profile in North America's plastics additives market by acquiring Norac Additives.
Peter Greven Group bought Norac Additives effective Sept. 30 for undisclosed terms and has renamed it Norac Additives LLC. Norac has its headquarters and development laboratory in Pomona, Calif., and runs a production plant in Helena, Ark.
"They are very complementary businesses," said James Murphy, Norac sales and marketing manager, in a phone interview. Norac's management and employees will continue with the business.
Peter Greven's North American sales have focused on pharmaceutical, food and cosmetic applications but the group's global operations are also major oleochemical suppliers to plastics and other industries. The company's U.S. office is in Freehold, N.J.
Norac makes metallic stearates used as lubricants, process aids and mold release agents for a wide variety of plastics. It also supplies calcium-zinc heat stabilizers for PVC and ester-based lubricants for various polymers.
Norac was owned by the McCloskey family and Wally McCloskey, formerly CEO, will not continue with the business. The current president of Norac, Mike Connor, will remain as president of Norac Additives LLC.
The firm entered metallic stearates in 1966 when it bought Mathe Co. of Lodi, N.J. It opened a new production plant in Helena in 1981 and moved stearate production there in 1990. It subsequently invested in research and development and production capacity to build on its core expertise in stearates. In 2001 an official said its annual sales were about $50 million.
Peter Greven Group and its parent company Peter Greven GmbH & Co. KG are based in Bad Muenstereifel, Germany, with production plants there and in Venlo, the Netherlands and Penang, Malaysia. It was founded in 1923 and supplies a broad range of metallic and alkali soaps in global markets. It characterizes itself as a middle-size, family owned company. Murphy said it is somewhat larger than Norac Additives. The group employs about 300 in industrial oleochemicals and another 60 in health care products.
"With this very important acquisition we feel that our international position within the metallic soaps and plastic additives sector is further improved," noted the German company's managing director Peter Greven in a news release.
"The U.S. market is very interesting for us and we see there is still substantial growth potential for our group."
Peter Greven Group stresses its products are based on renewable raw materials.