Innospec acquires Chemsil & Chemtec to strengthen personal care strategy
Innospec Inc. announced that it has acquired Chemsil Silicones Inc. and the Chemtec Chemical Co., from its private owners. Chemsil develops and markets silicone-based formulations to the personal care industry. Chemtec, which distributes a wide range of personal care ingredients, is focused on customers on the U.S. West Coast. The companies have combined sales of USD40 million.
“Personal Care is the strategic core of our Performance Chemicals business, and we have been seeking to add to both the technology base and the geographical footprint of this business,” said Patrick Williams, president and CEO of Innospec. He said the acquisition is expected to be immediately accretive.”
“Although we have been pleased with the growth of our companies over the past few years, we have concluded with our lead advisors CIM Partners that we needed to be part of a larger group to realize our ambitions to grow our presence in the U.S., and to market our technologies internationally. Joining Innospec provides us with the infrastructure and critical mass to accelerate that expansion and focus on future technologies,” said James Harrison, President of Chemsil and Chemtec.
Chemsil will become part of Innospec’s Performance Chemicals business, which develops and markets a range of surfactants and emollients to the personal care industry. Chemtec will continue to operate as a key distributor in this market.
The acquisition has been funded through the successful negotiation of an amendment and increase to the Company’s existing revolving credit facility agreement from USD100 million to USD150 million. The secured facility remains available through to December 2016. In addition, the amendment allows the company to request a further amount of up to USD50 million to be committed by various lenders.
Innospec Inc. is an international specialty chemicals company with approximately 900 employees in 20 countries. Innospec manufactures and supplies a wide range of specialty chemicals to markets in the Americas, Europe, the Middle East, Africa and Asia-Pacific. Innospec’s Fuel Specialties business specializes in manufacturing and supplying the fuel additives that help improve fuel efficiency, boost engine performance and reduce harmful emissions. Innospec’s Octane Additives business is the world’s only producer of tetra ethyl lead (TEL), which has been banned in most countries.
(September 4, 2013)