- Mergers & Acquisitions
Italmatch Chemicals Group acquires Chinese Jiayou Chemical
Italmatch Chemicals, a global specialty chemical group leader in the production and marketing of performance additives for water & process treatment, oil & gas, industrial lubricants and plastics, has acquired the Chinese Jiayou Chemical, which is active in the antiscalant phosphonate business, from Ecolab Inc., the global leader in water, hygiene and energy technologies and services.
The deal includes: the acquisition of the entire antiscalant business and assets relating to phosphonate production and sales carried out by Jiayou Chemical Co. (formerly part of Jianghai), located in the Changzhou area in China.
This transaction allows Italmatch Chemicals to strengthen its presence in the Asia Pacific Region with a new plant specialized in production of phosphonates antiscalant. The new site complements the other dedicated plants located in North America and Europe, and makes Italmatch and its brand Dequest the global leader in this business.
“After closing 2017 with important acquisitions in North and Latin America, we are happy to begin 2018 with a very significant agreement for Italmatch Chemicals in Asia Pacific. Through this acquisition, Italmatch Chemicals achieves a global presence and a global market leadership in phosphonates, thanks to a new manufacturing presence in China. Today, China represents a fast-growing market – especially in industrial water and process water treatment – characterized by higher quality and high environmental standards, in line with the Central Government’s objectives to elevate environmental standards of chemical companies, which are fully aligned with Italmatch Chemical’s strategic objectives in the Asia Pacific region. In addition, the manufacturing footprint expansion gained through this transaction strengthens Italmatch Chemical’s ability to supply its largest global customers,” said Sergio Iorio, CEO of Italmatch Chemicals Group.
Founded in 1997, Italmatch Chemicals, is a leading innovative chemical group, specialized in performance additives for water treatment, oil & gas, lubricants and plastics, and boasts a wide product range able fulfil the requirements of the most demanding applications, including personal care. The group generates EUR 400 million (USD 492 million) in revenues and operates through six manufacturing plants in Europe (Italy, Spain, Germany and UK), four in Asia Pacific (China and Japan), four in North America (U.S.A.) and sales/distribution subsidiaries in Brasil, Belgium, China, Japan, India, Poland, Singapore and the U.S.A. Italmatch Chemicals Group employs 700 workers.
Ardian, the largest European independent private investment company, acquired the majority of Italmatch Chemicals together with the management in July 2014 and is committed to supporting the company’s growth.