Arkema to acquire 2 companies in China with “green” chemistry
Arkema says it will acquire Chinese companies Hipro Polymers in Zhangjiagang, a producer of bio-sourced polyamide 10.10; and Casda Biomaterials in Hebei Province, a manufacturer of sebacic acid, derived from castor oil used to manufacture polyamide 10.10. Both acquisitions are consistent with Arkema’s strategy to develop performance products, as well as the program presented by the Group in November 2010 to acquire around €1 billion of sales. Both companies reported aggregate sales estimated at US$230 million for 2011. The acquisition price is based on an enterprise value of US$365 million for 100% of the capital of both companies, which are predominantly owned by a joint venture between privately owned Chinese specialty chemical company Feixiang Chemicals and Bain Capital, a global alternative asset manager with more than US$60 billion under management. The deals are expected to be completed in early 2012. “This acquisition is a great opportunity in many respects. It will help us boost our position in China, one of Arkema’s geographic priorities for the last five years. With polyamide 10.10, it aptly complements our high added value polyamide 11 and 12 product range, and fits in well with our growth strategy in green chemistry,” said Thierry Le Henaff, Arkema chairman and CEO. With the acquisition of Casda Biomaterials, the world’s leading producer of sebacic acid, Arkema will benefit from sebacic acid integrated feedstock for the production of polyamide 10.10, and, through this strategic raw material, would be able to supply diversified world markets such as lubricants, plasticizers and corrosion-inhibitor additives, as well as the fast-growing bio-sourced and biodegradable copolymer market. The acquisition is subject to approval by the Chinese authorities. (November 22, 2011)