SK Capital has agreed to acquire Israel Chemicals‘ fire safety and and oil additives businesses for about $1 billion. The deal is expected to close in the first half of 2018. The Valence Group, Rothschild & Co and HSBC Securities (USA) Inc were M&A advisers to SK Capital on the transaction.
NEW YORK–(BUSINESS WIRE)–SK Capital, a private investment firm focused on the specialty materials, chemicals and pharmaceuticals sectors, today announced that it has signed a definitive agreement to acquire the Fire Safety and Oil Additives Businesses (the “Company”) of Israel Chemicals Ltd. (“ICL”) for approximately $1 billion. The transaction is expected to close in the first half of 2018, before which a new trade name will be selected and announced for the Company.
The Businesses, headquartered in St. Louis, Missouri, have global operations and are market leaders in each of their segments. The ICL Fire Safety business is a formulator and manufacturer of fire management chemicals. Its Phos-Chek fire retardants, Class A and B foams, and water enhancing gels are the world’s leading chemical solutions for managing wildland, military, industrial and municipal fires, and are used in partnership with fire management agencies across the globe. The ICL Oil Additives business provides high quality phosphorus pentasulfide used in the preparation of ZDDP-based lubricant additives, in critical engine anti-wear solutions that lead to prolonged combustion engine function, as well as in pesticide and mining chemicals applications.
Aaron Davenport, a Managing Director of SK Capital, stated, “This acquisition adds to SK Capital’s extensive experience of partnering with corporate sellers to execute carve-outs of non-core businesses and working with management to transform them into thriving, independent companies. As the global industry leader across both its segments, the Company offers an unmatched, vital value proposition to its customers with the highest quality standards and a dedication to premier service.”
Stephen d’Incelli, a Principal of SK Capital, commented, “We see multiple opportunities to invest in both organic and acquisitive growth to accelerate the Company’s strategy of introducing its differentiated technology, proprietary formulations, and state-of-the-art service operations to new channels, geographies, and markets.” Barry Penney, a Principal of SK Capital, added, “We look forward to collaborating with Eddie Goldberg, the leader of these Businesses, the rest of the management team and the dedicated employee-base to support their continued growth as an independent company.”
The Valence Group, Rothschild & Co. and HSBC Securities (USA) Inc. acted as M&A advisors to SK Capital; Kirkland & Ellis LLP acted as legal advisor and committed debt financing was provided by Barclays, Goldman Sachs USA, and HSBC Securities (USA) Inc.
About SK Capital
SK Capital is a private investment firm with a disciplined focus on the specialty materials, chemicals and pharmaceuticals sectors. The firm’s purpose is to build strong and growing businesses that create substantial long-term economic value. SK utilizes its industry, operating and investment experience to identify opportunities to transform businesses into higher performing organizations with improved strategic positioning, growth and profitability as well as lower operating risk. SK’s portfolio of businesses generates revenues of approximately $6 billion annually, employs more than 8,700 people globally and operates more than 60 plants in 25 countries. The firm currently has approximately $1.9 billion of assets under management. For more information, please visit www.skcapitalpartners.com.
ICL is a global manufacturer of products based on specialty minerals that fulfill humanity’s essential needs primarily in three markets: agriculture, food and engineered materials. ICL shares are dual listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The company employs approximately 13,000 people worldwide, and its sales in 2016 totaled US$5.4 billion. For more information, visit the company’s website at www.icl-group.com.