SK Capital Partners is buying the antioxidant and UV stabilizer solutions business of publicly traded Chemtura Corp. The business is a supplier of antioxidants, antiozonants, intermediates and inhibitors, polymer modifiers, and UV stabilizers used to improve the production and performance properties of polymers, rubbers and plastics. The transaction is valued at approximately $200 million.
SK Capital Partners, a U.S.-based private investment firm, announced today that it has signed a asset purchase agreement to acquire the Antioxidant and UV Stabilizer Solutions business of Chemtura Corporation (NYSE/EuroNext Paris: CHMT). The business is a leading global supplier of a comprehensive portfolio of additives including antioxidants, antiozonants, intermediates and inhibitors, polymer modifiers, and UV stabilizers used by customers to improve the production and performance properties of polymers, rubbers and plastics. The transaction is valued at approximately $200 million.
With a disciplined focus on the specialty materials, chemicals and healthcare sectors, SK Capital has significant relevant experience gained through both previous and current portfolio companies in the polymers, plastics and associated additives sectors, as well as deep knowledge of the end markets served by the business. The acquisition is consistent with SK Capital’s strategy of acquiring niche market leaders with strong brands, technologies and underlying growth trends and actively supporting management in building thriving businesses with sustainable competitive advantages.
Barry Siadat, a Managing Director of SK Capital, noted, “With its unique pedigree resulting from the merger of three leading polymer additives companies, we believe the business is an attractive platform with significant growth and performance improvement potential. We intend to enhance the business’ focus on delighting customers through service, product and technology leadership. The growth of synthetic polymers and their increased global usage in a variety of applications presents a substantial opportunity for the business.”
Peter Smith, President of the business, commented “We are excited about teaming with SK Capital to expand and accelerate our growth and innovation initiatives. SK Capital’s track record of successfully completing corporate carve-outs and investing in companies in the polymer and related additives markets will ensure a smooth transition and position us well to realize our long-term strategic objectives.”
SK Capital Managing Director Jack Norris added, “We believe that the transition from a non-core business within a large public company to a standalone organization will enable improved execution and a renewed emphasis on growth. Management has done an excellent job of redefining the business’ strategy and successfully repositioning it as a strategic partner and solutions provider to customers. Leveraging our market knowledge, industry relationships and operating resources, we look forward to actively supporting management.”
The transaction is expected to close at the end of 2012 or early 2013.
Latham & Watkins LLP acted as legal counsel to SK Capital.
About SK Capital
SK Capital is a private investment firm with a disciplined focus on the specialty materials, chemicals and healthcare sectors. Our integrated, multi-disciplinary team utilizes its industry, operating and investment experience to help transform businesses into higher performing organizations. Located in New York, NY and Boca Raton, FL, we are currently investing from SK Capital Partners III, L.P., a $500 million fund of committed capital. Our portfolio companies generate revenues of over $3 billion annually and employ more than 3,400 people.
Please visit www.skcapitalpartners.com for more information about SK Capital.
Chemtura Corporation, with 2011 sales of $3 billion, is a global manufacturer and marketer of specialty chemicals, agrochemicals and pool, spa and home care products. Chemtura builds the chemistry that makes other products more durable, safer, cleaner and more efficient. Major industries served include transportation, energy & electronics, and agriculture.
With global headquarters in Philadelphia, Pennsylvania, USA, Chemtura manufactures products in 14 countries and sells products in over 100 countries. Chemtura has approximately 4,300 employees in research, manufacturing, sales and administrative facilities in every major market of the world, with regional headquarters and shared service centers in São Paulo, Brazil; Shanghai, China; Middlebury, Connecticut, USA; and Manchester, United Kingdom/Frauenfeld, Switzerland.Get your FREE trial or subscribe now to Buyouts to find new deal opportunities, super-charge your fundraising efforts and track top managers.