NewMarket Corp., Afton’s parent, acquires AMPAC for USD700 million
Afton Chemical parent NewMarket Corporation has entered into a definitive purchase agreement to acquire AMPAC Intermediate Holdings, LLC, the parent company of American Pacific Corporation (AMPAC), for approximately USD700 million. This acquisition marks a significant expansion of NewMarket’s portfolio in the specialty chemicals sector.
AMPAC, headquartered in Cedar City, Utah, United States, is a leading manufacturer of critical performance additives used in solid rocket motors for space launch and military defense applications. With more than 60 years of service in space launch and national defense programs, AMPAC is a key player in these sectors. Additionally, AMPAC produces Halotron BrX, an environmentally friendly fire extinguishing agent.
Founded in 1955, AMPAC operates one facility and employs around 150 full-time staff. This acquisition by NewMarket is set to broaden its exposure to mission-critical and resilient sectors.
NewMarket, with a history dating back to 1887, has been a prominent name in the specialty chemicals business for nearly a century. The company is committed to safety, innovation, and making a positive impact on the world. NewMarket, based in Richmond, Virginia, U.S.A., collaborates closely with customers to provide advanced products, comprehensive testing programs, and superior technical solutions.
Thomas E. Gottwald, chairman and CEO of NewMarket, expressed enthusiasm about the acquisition: “AMPAC represents a strategic fit with our acquisition criteria. Its role in global safety, security, and space programs aligns with our long-term vision. We are excited to welcome the AMPAC team to NewMarket.”
The transaction is expected to close in the first quarter of 2024, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. NewMarket plans to finance the acquisition through available cash and borrowings under its revolving credit facility.
NewMarket Corporation, through its subsidiaries Afton Chemical Corporation and Ethyl Corporation, is a leader in developing, manufacturing, blending, and delivering chemical additives that enhance the performance of fuels and lubricants.