Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Plastics News China
  • Rubber & Plastics News
logo-pn-color
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • End Markets
    • FYI Charts
    • LSR World
    • Multimedia
    • NPE2021
    • K Show
    • Special Reports
    • Top materials of injection molders
      Recycled PET use by product category
      US PET, flexible packaging desintations
      Global fluropolymers additives market: CAGR
    • NPE exhibitors question handling of deposits for canceled trade show
      Exhibitors back NPE cancellation: ‘We couldn't take that risk'
      NPE2021 canceled as in-person event
      NPE reviews its options as pandemic prompts exhibitor to exit
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • What Keeps You Up At Night
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Polymer Points Live
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Videos
    • Galleries
    • Podcasts
    • CEO Issue
    • Best Places to Work
    • Processor of the Year
    • Rising Stars
    • Women Breaking the Mold
  • Opinion
    • The Plastics Blog
    • Kickstart
    • Heavy Metal
    • One Good Resin
    • BRICS and Plastics
    • All Things Data
    • Viewpoint
    • Perspective
    • Mailbag
    • Getting back on the road
      How long will it take for EVs to replace internal combustion engines?
      Watching, and hoping, for progress in 2021
      COVID-19 stories dominate 2020 headlines
    • Kickstart: More toys for your collection
      Kickstart: Microchips, masks and US manufacturing
      Kickstart: Bringing plastics, sustainability to the construction site
      Kickstart: Making more US beds
    • Heavy Metal: Coronavirus edition, plus the work of working from home
      Don't put off succession planning
      What's a good gift for your cobot? Batteries?
      Here's some big ideas to mull over the holidays
    • Plaskolite wins 3M supplier award
      Green feet: Braskem partners with Dansko on bio-based clogs
      Curbell donates plastic sheet for prosthetics project in Ecuador
      Covestro volunteers build ramp for Ohio veteran
    • There was no choice but canceling NPE still a big deal
      The business case for producer responsibility
      Think divided government stalls plastics legislation? Think again
      ACC, NAM eye economic priorities in Biden presidency
    • Thermoformers: Would you believe a 12 percent gain?
      Just how big is thermoforming in North America?
      Changing names for compounders embracing corporate branding
      Diversity the key to outperforming the market
    • Thermoformers: Would you believe a 12 percent gain?
      The benefits of getting social
      Rising Stars shine bright future on industry
      Getting back on the road
    • Perspective: Plastics manufacturers — a surprising contribution to sustainability
      Plastics industry business owners: Listen to your future workforce
      Perspective: ‘Fake news' of a different sort?
      Perspective: Making products in the USA is good for the planet
    • Mailbag: Additional fees for electric vehicles ‘unfortunate'
      Mailbag: Where's the plastics industry's response to critics?
      Mailbag: Manufacturers struggling to follow COVID-19 safety rules
      Modernizing recycling infrastructure will benefit businesses as well as the environment
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
    • Maintenance can ensure efficient blender operation
      Dosing: Perfect for adding color
      Blending vs dosing: What you need to know
      Going low or high: Comparing volume
    • Colors and custom compounds
      In the laboratory: Compounding solutions
      Recycling content: Resins going ‘green’
      Compounding: Glass and other fillers
    • Dryer maintenance: Don’t err with air
      Dryers: Options for a shop’s process
      Dryer installation: Going central?
      Resins: Hygroscopic or non-hygroscopic
    • Electric injection molding presses: Efficiency is key
      Hydraulic injection molding machines
      Proper maintenance can prevent downtime
      Hybrid injection molding machines
    • Purging Hot runners: Open or closed methods
      Purging extrusion machinery
      Purging extrusion blow molding machines
      Purging: Chemical, abrasive and non-abrasive
    • Controls, special applications boost production, profitability
      Robot maintenance key for smooth operation
      High-speed robots: A rapid way to increase efficiency
      Robots: Every shape and size
    • Maintenance: Key for efficiency
      Shredders: Plastic in pieces
      Safety first for size reduction
      Granulators: The right fit
    • Structural foam molding: Flexibility for processors
      Video: Structural foam molding
    • Mold inventory: How many molds does a shop have?
      Molds: Innovation
      Mold changeover: Saving time and money
      How molds work
    • Labor: Apprenticeships may provide answer
      Internships: Solving the skills gap in-house
      College training, programs
      Lean Six Sigma: Transforming business operation
  • Events
    • Plastics News Events
    • Industry Events
    • Livestreams/Webinars
    • Ask the Expert
    • Polymer Points Live
    • Reifenhäuser Technologies Livestreams
    • 2020 Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
    • Polymer Points Live - February 2021
      Polymer Points Live - January 2021
      Polymer Points Live - December 2020
      Polymer Points Live - October 2020
    • Plastics in Healthcare 2020
    • Plastics News Executive Forum
    • Plastics in Automotive
    • Plastics News Caps & Closures
    • Plastics in Healthcare
    • Women Breaking the Mold Networking Forum
  • Resin Prices
    • All Resins
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Rankings
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Data Store
  • Directory
  • More+
    • Classifieds
    • Digital Edition
    • Newsletters
    • Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Processor of the Year submissions
    • Sponsored By Mitsubishi
      Innovative new technology from Mitsubishi Engineering-Plastics Corporation helps reduce emission footprints
      Canon Virginia, Inc.
      Sponsored Content By Canon Virginia, Inc.
      Canon Virginia Inc. brings collaboration to the table
      Sponsored By CDS MACHINES
      Facing medical equipment shortages during COVID-19 outbreak?
      Sponsored Content By Canon Virginia, Inc.
      Transform your molding capabilities with the Canon Shuttle Mold System
    • KraussMaffei
      Sponsored By KraussMaffei
      KraussMaffei Retools in US with investment from Parent Ownership
    • Sponsored By ENGEL Machinery
      Tailored maintenance for injection molding machines and robots
      Sponsored By ENGEL Machinery
      Improve maintenance efficiency with e-connect.monitor
      Sponsored By ENGEL Machinery
      Maximum precision for lowest shot weights
      Sponsored By ENGEL Machinery
      Even more cost effectiveness for small precision parts
    • Sponsored By Conexiom
      Use Sales Order Automation to free up time for CSRs to focus on customers, not manual entry
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
January 26, 2021 11:22 AM

Two SK Capital deals highlighted materials M&A in second half of 2020

Frank Esposito
Plastics News Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Michael A. Marcotte/File photo

    Guillermo Quijano Fals, general manager Latin America, Techmer de Mexico S. de R.L. de C.V., left, and John R. Manuck, Chairman and CEO, Techmer PM, at Plastimagen 2018.

    Investment firm SK Capital stayed active in materials M&A in the second half of 2020 with two plastics-related deals.

    New York-based SK in July acquired a majority stake in materials firm Techmer PM LLC for an undisclosed price.

    Clinton, Tenn.-based Techmer makes engineered compounds and color and additive concentrates for plastics and fibers. SK bought the majority stake from Techmer CEO and Chairman John Manuck, along with business partners Rehrig Pacific and Tokyo Ink.

    Manuck, who founded Techmer in 1981, will retain a significant ownership stake. He told Plastics News that the deal with SK will allow Techmer to continue to grow, especially in international markets.

    Less than a week after the Techmer deal, SK announced it was acquiring the specialty polymers business of Baker Hughes for an undisclosed price. That business makes specialty low molecular weight olefin polymers, including a range of functional polymers and high melting point polyethylene waxes. The company has a manufacturing plant in Barnsdall, Okla.

    In addition to its two second-half purchases, SK now owns compounder Geon Performance Solutions of Avon Lake, Ohio; nylon 6/6 resin maker and compounder Ascend Performance Materials of Houston; and additives supplier SI group of Schenectady, N.Y. SK's total portfolio has annual sales of about $9 billion and employs more than 10,000 globally.

    Market veteran Phil Karig said that materials firms remain attractive to both private equity and strategic buyers.

    "Once a private equity firm has a materials firm in-house, it can act like a strategic buyer," said Karig, managing director of Mathelin Bay Associates in St. Louis. "And strategic buyers can buy more capacity and customers faster and with less risk by acquiring an existing [materials] company than by building on their own."

    Materials firms Celanese, Trinseo, Ineos and Huntsman each were involved in big-money deals in the second half as well.

    After 56 years, Dallas-based Celanese ended its Polyplastics joint venture by selling its share to partner Daicel Corp. for almost $1.6 billion in cash. Celanese had owned a 45 percent stake in Polyplastics, which makes specialty plastics including acetal, polyphenylene sulfide and liquid crystal polymer. The JV was founded in 1964. Dallas-based Celanese announced the deal with Tokyo-based Daicel on July 20.

    Polyplastics operates two plants in China and plants in Japan, Malaysia and Taiwan. The business also operates two plants in Germany: one making specialty polymers and one making specialty chemicals. According to its website, Polyplastics has annual acetal production capacity of almost 700 million pounds.

    Berwyn, Pa.-based Trinseo in December bought the polymethyl methacrylate (PMMA) business of Arkema SA of Colombes, France, for almost $1.4 billion. The deal allows Trinseo to add acrylics to a lineup of products that already includes ABS, polystyrene, latex and synthetic rubber. Trinseo now is looking for a buyer for its synthetic rubber business.

    The deal includes the Plexiglas brand in the Americas. Arkema has been actively buying and selling assets as part of a strategy to become a specialty materials supplier. Trinseo said the acrylics business complements its existing offerings across several end markets including automotive and construction.

    The PMMA business being acquired employs 860 and operates seven production sites: four in Europe and three in North America.

    Ineos acquired Sasol Ltd.'s stake in a Texas-based high density polyethylene resin unit for $404 million. Sasol of Johannesburg and Houston-based Ineos had been 50-50 partners in the unit, which operated as Gemini HDPE LLC in La Porte, Texas. The unit has annual production capacity of just over 1 billion pounds of bimodal high density polyethylene, primarily sold into pipe and film applications.

    Huntsman acquired additives maker Gabriel Performance Products in a $250 million all-cash deal. Gabriel is based in Akron, Ohio, and makes specialty additives and epoxy curing agents for coatings, adhesives, sealants and composites. Huntsman, based in The Woodlands, Texas, acquired Gabriel from Audax Private Equity of Boston and San Francisco.

    Gabriel posted sales of $106 million in 2019. The firm operates manufacturing plants in Ashtabula, Ohio; Harrison City, Pa.; and Rock Hill, S.C. Huntsman Advanced Materials President Scott Wright said that the acquisition "broadens the offering in our specialty portfolio" and is complementary to the firm's recent acquisition of CVC Thermoset Specialties.

    In other notable second-half materials deals:

    • Material Difference Technologies LLC acquired Houston-based plastics recycler Replas from LyondellBasell Industries. No purchase price was disclosed in the deal between MDT, a recycler and resin distributor in Sarasota, Fla., and global materials maker LBI.

    Replas traces its history to Evansville, Ind.-based Matrixx Group and plastics pioneer Ray Wright. LBI had acquired the Replas business as part of its purchase of A. Schulman Inc. in 2018.

    • PVC additives maker Rheogistics LLC was sold to wax supplier International Group Inc. for an undisclosed sum. Rheogistics of Picayune, Miss., makes lubricant systems for rigid PVC. Toronto-based IGI is a vertically integrated producer of custom and performance waxes.

    • Materials firm Lubrizol Corp. acquired 3D printer Avid Product Development LLC for an undisclosed price. Officials with Lubrizol in Wickliffe, Ohio, said that Loveland, Colo.-based Avid "offers a unique blend" of 3D printing capabilities, including design for additive manufacturing and prototyping.

    • Maroon Group, a distributor of plastic additives and other chemicals, was acquired by life science ingredients supplier Barentz International BV for an undisclosed price. Avon, Ohio-based Maroon is majority owned by private equity firm CI Capital LLC of New York. CI bought a majority stake in Maroon in 2014 and since then has grown the business by making 11 acquisitions.

    Maroon President and Chief Operating Officer Mike McKenna told PN that the deal "provides an immense amount of opportunity for our team globally," since Maroon had generated more than 90 percent of its sales from North America.

    • Nova Chemicals Corp. sold its expandable styrenics business to Mexican conglomerate Alpek SAB de CV for an undisclosed price. The sale includes manufacturing plants in Painesville, Ohio, and Monaca, Pa. Officials with Nova in Calgary, Alberta, said that the sale is an important step in the firm's plan to focus on its olefin and polyethylene business.

     

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    logo-pn-color
    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber & Plastics News
    • Urethanes Technology
    • Plastics News China
    • European Rubber Journal
    • Tire Business
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • What Keeps You Up At Night
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
        • Polymer Points Live
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • FYI Charts
        • Current FYI
      • LSR World
      • Multimedia
        • Videos
        • Galleries
        • Podcasts
      • NPE2021
      • K Show
      • Special Reports
        • CEO Issue
        • Best Places to Work
        • Processor of the Year
        • Rising Stars
        • Women Breaking the Mold
    • Opinion
      • The Plastics Blog
      • Kickstart
      • Heavy Metal
      • One Good Resin
      • BRICS and Plastics
      • All Things Data
      • Viewpoint
      • Perspective
      • Mailbag
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • Plastics News Events
        • Plastics News Executive Forum
        • Plastics in Automotive
        • Plastics News Caps & Closures
        • Plastics in Healthcare
        • Women Breaking the Mold Networking Forum
      • Industry Events
      • Livestreams/Webinars
      • Ask the Expert
      • Polymer Points Live
      • Reifenhäuser Technologies Livestreams
      • 2020 Caps & Closures Library
      • Plastics in Healthcare Library
      • Women Breaking the Mold Networking Forum Library
    • Resin Prices
      • All Resins
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Rankings
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Data Store
    • Directory
    • More+
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified
      • Digital Edition
      • Newsletters
      • Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Processor of the Year submissions