Geleen, Netherlands — Polyscope Polymers BV, the Dutch manufacturer of styrene maleic anhydride (SMA) copolymers, has completed its purchase of Total SA's SMA business, Cray Valley.
The deal includes Cray Valley HSC Asia Ltd., Cray Valley (Guangzhou) Chemical Co. Ltd. and Total Petrochemicals & Refining USA Inc., based in the Houston area, Polyscope said in a June 3 statement.
The transaction also involved the transfer of all SMA products, inventory, application knowledge, and intellectual property from Cray Valley.
The financial terms of the acquisition and further details on the date of the sale were not disclosed.
Polyscope Polymers will now supply all former Cray Valley customers, integrating the businesses and supply chains in all geographic regions worldwide.
According to Polyscope, Cray Valley is considered the global market leader for low molecular weight (LMW) SMA products and was the main competitor of its specialty chemicals business unit.
"This successful business integration is a major milestone for the business and a key stage in our Polyscope 3.0 … strategic plan initiated in 2017," said Patrick Muezers, CEO of Geleen-based Polyscope Polymers.
Aimed at achieving market leadership, the four-year strategic plan included the integration of a suitable competitor, he said, and Cray Valley proved to be an excellent strategic fit.
"It has significantly strengthened our LMW SMA position and provides us with a better-balanced future business model with global growth opportunities in both engineering plastics and specialty polymers markets," said Muezers.
According to the Polyscope, the due diligence carried out prior to the purchase highlighted "attractive sales, operational, technology and financial synergies between the two businesses."
Muezers is planning to leverage the synergies to optimize costs, increase productivity and develop new products.
The move will also improve the Geleen company's supply chain globally to achieve sustainable profitable growth in the coming years.
Polyscope, according to Muezers, is now eying growth through further penetration in existing markets as well as developing new target end markets and applications for added-value SMA polymer solutions.
Established in 2006, Polyscope is a leading player in high molecular weight (HMW) SMA additives for engineering plastics and SMA modified advanced plastic compounds.
According to Polyscoope, the acquisition, from the customer standpoint, has been "a good fit, with no negative impact."
"Many existing Cray Valley customers were already dual sourcing from Polyscope, being the only other supplier able to provide LMW SMA products to the Cray Valley quality and performance specification," the company added.