Mergers & Acquisitions

Kraton expects to complete acquisition of Arizona Chemical in early January

Kraton expects to complete acquisition of Arizona Chemical in early January
Photo courtesy of Arizona Chemical Company.

Kraton Performance Polymers, Inc. announced that it will consummate the previously announced acquisition of Arizona Chemical Company in early January. The company expects the financing in connection with the acquisition to be at a cost consistent with that previously announced. Kraton entered into a definitive agreement to acquire all of the capital stock of privately held Arizona Chemical Holdings Corporation for a cash purchase price of USD 1.37 billion in September 2015.

Kraton will finance the purchase price through debt facilities that have been committed by Credit Suisse Securities (USA) LLC, Nomura Securities International, Inc. and Deutsche Bank Securities, Inc. The seller of Arizona Chemical is AZC Holding Company, LLC, which is principally owned by investment funds managed by American Securities LLC.

Kraton Performance Polymers, Inc., through Kraton Polymers LLC and its subsidiaries, is a leading global producer of engineered polymers and one of the world’s largest producers of SBCs, a family of products whose chemistry was pioneered by Kraton more than 50 years ago. Kraton polymers are used in a wide range of applications, including adhesives, coatings, consumer and personal care products, sealants and lubricants, medical, packaging, automotive, paving, roofing and footwear products. Kraton offers products to more than 800 customers in more than 60 countries worldwide. It manufactures products at five plants globally.

Arizona Chemical is a leading global producer of high-value performance products and specialty chemicals derived from non-hydrocarbon, renewable raw materials. Arizona Chemical’s end-user market exposure is highly complementary with that of Kraton, particularly in markets such as adhesives, roads and construction, coatings and oilfield chemicals.

 

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