DyStar LP, the U.S. subsidiary of DyStar Global Holdings (Singapore) Pte Ltd, has agreed to acquire five specialty chemical units (the specialties, polymer additives, and nitriles business groups) of Emerald Performance Materials LLC, a leading manufacturer and marketer of specialty chemicals based in Cuyahoga Falls, Ohio, U.S.A., that is majority owned by affiliates of American Securities LLC.
Boca Raton, Florida-based Sun Capital Partners Inc. created Emerald Performance Materials in 2006 out of businesses it bought from additive manufacturer Lubrizol Corp. American Securities then acquired Emerald from Sun Capital Partners in 2014.
In a separate transaction, DyStar LP will sell the polymer additives and nitriles businesses to Jiangsu Sinorgchem Technology Co. Ltd., a subsidiary of Sinochem Group. The sale will include two plants located in Akron, Ohio and Henry, Ill., both in the U.S., which produce a range of polymer additives, including aminic and phenolic antioxidants.
Based in Shanghai, China, Jiangsu Sinorgchem Technology Co., Ltd. develops and supplies rubber and chemical additives. The company offers antioxidant products, which it exports to customers in various countries across Asia, Europe, South America, the Middle East, and Australia, etc.
The sale is expected to close in the third quarter of 2016, subject to regulatory approvals.
Upon completion of the dual transactions, DyStar LP will retain the specialties businesses, which adds three new manufacturing sites to DyStar’s U.S. business.
“We are enthusiastic about the growth that the combination will foster. This high quality acquisition will significantly strengthen DyStar’s position in the chemical industry and we are uniquely positioned to take advantage of the new revenue growth and synergy opportunities,” said Ruan Weixiang, DyStar chairman.
DyStar Group is a solution provider, offering customers across the globe a complete range of colorants, auxiliaries and services. With a heritage of more than a century of product development and innovation for the textile and leather industry, DyStar has developed into new markets and now in addition serves the paper, plastic and many other specialty chemical industries.