Chemicals sector comment – July 2012

Dato

Clearwater’s latest transaction in the chemicals industry involves the sale of natural colourants business Phytone to FMC.

Phytone is a fast-growing developer and producer of natural colours and formulations for the food and beverages, nutrition and personal care sectors. Based in the UK, the company is a uniquely attractive asset given the growing demand from natural ingredients from renewable and sustainable sources.

The acquisition will allow FMC to enhance its relationships with European consumer products companies as they increasingly look for reliable sources of natural ingredients with consistent functionality. The company’s portfolio of speciality ingredients will be crucial in the US group’s development programmes for customers in the food, nutraceuticals, personal care and pharmaceutical markets. With the colours market forecast to reach $1bn by 2015, FMC BioPolymer also sees Phytone as the ideal complement to its acquisition last year of Chilean naturals producers South Pole Biogroup.

Deals

DIANA Group SA, a portfolio company of AXA Private Equity has acquired Pacific Pure-aid Company, a US based manufacturer and seller of vegetable extracts and concentrates. The acquisition will enable DIANA to extend its product range and strengthen its business in North America.

Berry Plastics Corporation, a portfolio company of Apollo Global Management, LLC and Graham Partners LP, has acquired STOPAQ B.V., the Netherlands based supplier of green visco elastic solutions to protect assets from corrosion and water ingress. STOPAQ will be incorporated within Berry Plastics’ Corrosion Protection Group and will enable Berry Plastics to expand its product range.

FMC Corporation has acquired Phytone Ltd, a UK manufacturer of natural colouring additives for food, beverage, and personal care and nutrition sectors. The transaction is in line with FMC’s strategy to expand its new natural colours portfolio and will enable FMC to enhance service to European colour customers.

Wurth Group has acquired DINOL GmbH, the Germany based developer of corrosion protection, bonding, coating, sealing and vehicle body repair systems and Diffutherm BV, the Netherlands based developer, producer and distributor of anti-corrosion, coatings, adhesives and sealants. The acquisition complements Wurth Group’s current portfolio and will strengthen the Group’s position in the automotive retrofitting and accessories market.

Spanogroup NV, a portfolio company of Sofinim NV, has acquired Dynea NV, a Belgium based manufacturer of urea and urea melamine resins and adhesives and a subsidiary of Dynea Chemical Oy and The divestment is in line with Dynea’s strategy to focus on its core business.

A-Gas International Ltd, a portfolio company of private equity firm Lloyds TSB Development Capital Ltd, has acquired Technochem Australia Pty Ltd, an Australia based specialist blender, re-packer and distributor of refrigerant gases and services to the refrigeration industry. The acquisition will allow A-Gas to enhance and develop its businesses relationships with customers in Australia.

Italian private equity firm Clessidra SGR SpA, has acquired an 80% stake in Bitolea srl, the Italy based company engaged in the production of chemicals. Post-acquisition, the Intini Family will retain its 20% stake in Bitolea.

Linde Korea, the South Korea based industrial gas providing arm of Linde AG, has acquired a 51% stake in PSG Corporation, the South Korea based industrial gas provider. The acquisition will enable both companies to improve their products and services.

Industrie De Nora SpA has acquired the remaining 49% stake in Chlorine Engineers co. Ltd., a Japan based company engaged in the design, engineering, manufacture, and sale of electrolysis, functional water, and water treatment plants. The transaction is part of Industrie De Nora’s strategy to expand its business through a wider geographic reach and to build a strong portfolio of solutions.

Roquette Freres SA, has acquired a 60% stake in Riddhi Siddhi Corn Processing Private Ltd, an India based manufacturer and distributor of corn wet milling, starch, and its derivatives. A new company namely Roquette-Riddhi Siddhi will be formed. The acquisition will enable Roquette Group to expand its operations in the nutrition and health and plant-based chemistry fields.

Schweiter Technologies AG has acquired Foamalite Ltd, an Ireland based manufacturer of extruded foam pvc and polyester sheeting. The acquisition will strengthen the operations of Schweiter’s 3A Composites business and enable 3A to broaden its existing product range.

Cabot Corporation has bought Norit NV, the global leader in activated carbon from affiliates. The acquisition strengthens Cabot’s specialty chemicals portfolio with a non-cyclical, high growth and high margin business.

Gazechim SA has bought the thermoplastic polymers business of Azelis SA. The divestment is in line with Azelis’s strategy to focus on specialty chemicals and ingredients. Gazechim is looking to complement its presence in thermoplastic and thermoset products, refrigerant and liquefied gases.

Royal DSM has bought US company Kensey Nash Corporation through the merger of its subsidiary Biomedical Acquisition Corporation with and into Kensey Nash. The acquisition strengthens DSM’s existing position in the market for bio-passive (medical coatings and polymers) and the emerging market for bio-active (resorbable polymers and drug delivery) materials.

Isoltema SpA, has bought Olin SA, a French manufacturer of sealants and other waterproofing products. The acquisition will strengthen Isoltema’s position in the sealants and waterproofing markets.

Elementis Plc has acquired Watercryl Quimica Ltda, a Brazilian coatings additives company, for USD 24m. The acquisition will significantly increase Elementis’s presence in Latin America and provide a platform for its Specialty Products business to accelerate growth in the region.