Sun Capital Partners said Thursday that it has acquired the business and assets of DSM Special Products. Financial terms were not announced. The seller was Royal DSM N.V. while Emerald Performance Materials, a unit of Sun Capital, is the buyer. DSM Special Products, of the Netherlands, makes toluene oxidation products. Sun Capital is a Boca Raton, Fla.-based PE firm.
Sun Capital Partners today announced that its affiliate Emerald Performance Materials, a U.S. producer and marketer of specialty chemicals for food and industrial applications, has acquired the business and assets of DSM Special Products, BV (“DSP”). DSP is a leading global manufacturer of toluene oxidation products. The purchase from Royal DSM N.V. (“DSM”) was approved by the European Commission on December 2. Terms of the transaction were not disclosed.
DSP, with a manufacturing site in Rotterdam and a commercial office in Geleen, will become part of the Emerald Kalama Chemical business which produces benzoic acid, sodium benzoate, benzyl alcohol and benzaldehyde out of its Kalama facility. DSP uses toluene oxidation technology to create sodium benzoate and benzoic acid sold under the Purox® brands, in addition to benzyl alcohol and benzaldehyde. These materials are used as high purity preservatives, antimicrobials, flavor and fragrance ingredients for food and beverages, cosmetic and household products, coatings, agrochemical, pharmaceutical and feed applications. DSM will remain an important customer of DSP.
Christopher H. Thomas, Principal, Sun Capital Partners, Inc., commented, “The acquisition of DSP will expand Emerald’s presence into Europe and within the specialty chemical industry, reflecting our commitment to the industry and to Emerald’s growth. This is Emerald’s third strategic acquisition, and we will continue to actively pursue acquisitions in this space.”
“The acquisition of DSP is yet another strong show of Emerald Kalama Chemical’s commitment to operate as a world class organization focusing on toluene oxidation chemistry in support of our customers worldwide,” stated Edward T. Gotch, President of Emerald Kalama Chemical, which is based in Cuyahoga Falls, OH. “The DSP acquisition provides Emerald with a significant manufacturing presence in Europe and a great base from which to serve our existing business in Europe, as well as support our growth in that region. We are very enthusiastic about this acquisition as we feel that DSP’s technologies, expertise and reputation in the market closely parallel ours.”
Sun Capital Partners’ affiliated investments in the chemicals industry include Sonneborn, the world’s largest dedicated supplier of white oils, petrolatums, waxes, and other hydrocarbon specialty products.
About Sun Capital Partners, Inc.
Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in companies that can benefit from its in–house operating professionals and experience. Sun Capital affiliates have invested in more than 245 companies worldwide with combined sales in excess of $40 billion since Sun Capital’s inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, and New York, as well as affiliates with offices in London, Paris, Frankfurt, Luxembourg, Shanghai and Shenzhen. For more information, please visit www.SunCapPart.com.
About Emerald Performance Materials
Emerald Performance Materials produces and markets technologically advanced specialty chemicals for a broad range of food and industrial applications. Its products play a variety of roles in the products that are consumed and used every day enabling them to last longer, look, smell, taste or perform better. Emerald products are used in aerospace, food, beverages, cosmetics, toothpaste, household products, paint, tires, automobiles, sports gear and many other applications. Headquartered in Cuyahoga Falls, Ohio, Emerald has four business units, seven operations and approximately 600 employees. To learn more about Emerald, please visit www.emeraldmaterials.com.