Italy’s Italmatch Chemicals has entered into an agreement to acquire Afton Chemical Corp.’s metalworking fluid (MWF) business. The transaction is expected to close by the end of May. Afton Chemical is a wholly-owned subsidiary of NewMarket Corp. based in Richmond, Va., U.S.A.
The deal includes the acquisition of the entire business and assets relating to metalworking fluid carried out in Bedford Park, Ill., U.S.A., and Manchester, UK sites, the know-how, technology and business in India and China, with production carried out from Hyderabad plant and in China.
Afton Chemical bought Polartech’s metalworking fluid business in March 2010. The acquisition included all the physical assets of Polartech’s business including its headquarters, R&D and manufacturing facilities in the UK, as well as manufacturing sites in India, China and the U.S.
The acquisition of Afton Chemical’s metalworking fluids business strengthens Italmatch Chemicals Group’s position in the industrial lubricants and metalworking fluids, integrating the current product range with a series of fluid additives for high-performance metal processing.
“This acquisition represents for Italmatch Chemicals a significant step forward in the strategy of expanding its market position in the industrial lubricants market. The agreement strategically follows the recent acquisition of Elco Corporation in the U.S.A., still in industrial lubricants business, allowing an important development of our current production range, through the introduction of new and advanced technologies mainly dedicated to water MWF and permitting to count on new sites in the U.S.A., in Europe and India. In the recent years we have heavily invested in this field and we are proud to be considered today a leading international player,” said Sergio Iorio, CEO of Italmatch Chemicals Group.
“The transaction falls into Italmatch Chemicals Group’s growth strategy and follows the recent acquisitions in Latin America, in the U.S.A. and in Asia-Pacific and proves the Group’s aim to keep growing also through external lines and global coverage,” said Maurizio Turci, CFO, corporate affairs and HR Director of Italmatch Chemicals Group. “From an industrial point of view, this acquisition presents strong components of innovation, research and technology and with the launch of significant entrepreneurial and commercial synergies, it can have a positive impact on medium/ long-term sustainability for the results of the industrial lubricants Business Unit.”
Founded in 1997, Italmatch Chemicals, based in Genoa, Italy, is a leading innovative chemical group, specialized in performance additives for water treatment, oil & gas, lubricants and plastics. 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.