In a specialty materials deal, Chase Corp. is acquiring NuCera Solutions LLC for $250 million.
NuCera of Houston makes specialty resins and waxes for high-performance applications, primarily at a production site in Barnsdall, Okla. The firm is a unit of financial firm SK Capital of New York. Westwood, Mass.-based Chase makes protective materials for high-performance uses.
The acquisition "is transformational in advancing Chase's strategic growth priorities," Chase President and CEO Adam Chase said in a news release. He added that NuCera's market position and North American manufacturing footprint "will allow us to gain additional scale and expand our presence across multiple new high-growth end markets."
The purchase will be funded by Chase's existing revolving credit facility and available cash on hand. The transaction is expected to close by the end of the third quarter.
NuCera employs 130 worldwide and posted sales of $83 million for the year ended April 30. NuCera CEO Steven McKeown said that his firm's product portfolio "is well aligned with Chase's core philosophy of making a material difference."
Mario Toukan, managing director of SK Capital, added that his firm "invested heavily in NuCera's people, capabilities and facilities, establishing a leading platform of technology-oriented, specialty polymers."
NuCera's materials — such as specialty polyethylene resins — are used as additives in polymer concentrates and pigments, among many applications. Chase officials added that the acquisition "will expand their firm's global reach into new blue-chip customers and attractive high-growth end markets."
Chase will continue to market under NuCera brands, with NuCera being integrated into Chase's Adhesives, Sealants and Additives reporting unit. Publicly held Chase posted sales of just over $293 million for the year ended Aug. 31. The firm's products include specialty chemicals, additives and specialty tapes.
SK Capital had owned NuCera for less than two years, acquiring the business from Baker Hughes Corp. in September 2020. SK's other plastics holdings include materials firms Ascend Performance Materials and Geon Performance Solutions.