Chemicals sector comment – October 2011

Dato

BASF has completed the sale of its fertiliser business to EuroChem, the Russian chemicals, fertilisers and minerals group.

The $950m transaction sees EuroChem acquire a 100% of BASF’s fertilizer assets located in Antwerp, Belgium and BASF’s 50% stake in the PEC-Rhin joint-venture in Ottmarsheim, France. These assets are engaged in the production of ammonium nitrate and calcium ammonium nitrate, fertilisers and nitrophosphoric acid. They include three nitric acid plants in Antwerp, as well as ammonia, ammonium nitrate and calcium ammonium nitrate and nitric acid production facilities at PEC-Rhin, a joint-venture with GPN, a subsidiary of Total. Together these operations have a combined annual production capacity of over 2.5mn metric tonnes of fertilisers.

The acquisition will increase EuroChem’s access to the European fertilisers market by adding added-value production facilities and strategically-located distribution facilities. For BASF, the disposal of the assets allows the group to achieve its aim of maintaining its Verbund concept at the site in Antwerp.

Deals

Rolfes Technology Holdings Ltd has acquired Agchem Holdings Ltd, a South African manufacturer and distributor of agro-chemicals. The transaction will allow Rolfes to fulfil its strategy of being able to offer a complete range of chemicals to diverse markets in Southern Africa.

EuroChem OJSC has acquired BASF SE’s fertiliser assets located in Antwerp, Belgium and BASF SE’s 50% stake in the PEC-Rhin joint-venture with Total SA in Ottmarsheim, France. The $950m transaction will enhance EuroChem’s presence in the Western Europe market and offer the group added-value production capabilities.

Kiri Industries Ltd has acquired Bodal Chemicals Ltd’s super phosphate plant for $130m. The plant is engaged in the production of sulphuric acid, dyes and dyes intermediaries.

Paramelt BV has acquired Evonik Industries AG’s Dilavest expansion wax business. The addition of Dilavest will enhance Paramelt’s portfolio with the addition of expansion waxes used in thermostatic control devices for aerospace, automotive and marine engines, as well as cooling and heating systems.

Frutarom Industries Ltd has acquired Flavor Systems International Inc, a US manufacturer of sweet and savoury flavours. The $35m acquisition will reinforce the Israeli group’s presence in the North American market and expand its range of products for food and beverage markets.

RPM International Inc has acquired Legend Brands Inc, a US manufacturer of building chemicals. The transaction will reinforce RPM’s portfolio with the addition of Legend Brands’ environmental control, fire and water damage restoration, microbial control and professional cleaning chemicals.

Imperial Holdings Ltd has acquired Lehnkering Holding GmbH, a German distributor of agricultural products, chemicals, metals and petrochemicals. The $230m transaction will enhance the South African group’s distribution network in Europe and offer it value-added services for the chemicals industry including preparation, mixing and bagging. The transaction provides an exit for German private equity firm Triton.

Halliburton Co has acquired Multi-Chem Group LLC, a US producer of oilfield chemicals. The acquisition will allow Hallburton to offer an integrated platform of oilfield services including the delivery of proprietary oilfield chemicals.

Synthron SA has acquired Northern Speciality Chemicals Co, a US manufacturer of paper chemicals. The acquisition will reinforce Synthron’s presence in the North American market and expand its product portfolio with the addition of Northern Speciality Chemicals’ anti-slip agents, fireproofing agents, spreading agents, waterproofing agents and wax emulsions.

General Paint Corp has acquired Peinture Laurentide Inc, a Canadian manufacturer and wholesaler of paints and coatings. The acquisition will enhance General Paint’s presence in the Canadian architectural coatings market.

CPS Color Group Oy has acquired Pinova SA, a Swiss manufacturer of colourants for facade coatings and wet plasters. The acquisition will provide CPS Color with growth opportunities in the Central and Eastern European region. The transaction provides an exit for German private equity firm Afinum Management.

Ineos AG has acquired the amino resins business of Royal DSM NV. The acquisition includes the Uramex brand name for amino products and will offer Ineos direct control of the supply chain for these melamine and benzoguanamine amino resins.

Eastman Chemical Co has acquired Scandiflex do Brasil SA, a Brazilian manufacturer of plasticizers. The acquisition will be integrated into Eastman’s Performance Chemicals and Intermediates division where it will reinforce the group’s presence in the Latin American market.

UK private equity firm Vision Capital has acquired a majority stake in United Initiators GmbH, a German manufacturer of organic peroxides and persulfates. The transaction sees US private equity firm Speyside Equity retain a minority stake in United Initiators.

Indorama Ventures plc has acquired Wellman International Ltd, an Irish manufacturer of polyester fibre. The acquisition will allow Indorama to reinforce its ability to provide waste polyester recycling services in the European market. The transaction provides an exit for German industrial investor Aurelius.