Mergers & Acquisitions

SK Capital completes acquisition of SI Group

SK Capital completes acquisition of SI Group
Photo courtesy of SI Group

SK Capital Partners, a private investment firm focused on the specialty materials, chemicals and pharmaceuticals sectors, announced on October 15 the completion of the acquisition of SI Group, a leading global developer and manufacturer of performance additives and intermediates. The transaction includes the combination of SI Group with Danbury, Connecticut, U.S.A.-based Addivant, an SK Capital portfolio company carved out of Chemtura Corp. in 2013.

Headquartered in Schenectady, New York, U.S.A., the newly combined company will market itself under the SI Group brand and will be a global technology and industry leader in performance additives, process solutions, pharmaceuticals and chemical intermediates, with strong market positions in the plastics, rubber, fuels and lubricants, oilfield and active pharmaceutical ingredients industries.

Integrating the two companies will create a business with USD 2 billion in annual sales. Led by Frank Bozich and John Steitz, proven chemical industry leaders with more than 75 years of combined expertise, SI Group will operate with a global workforce of more than 3,000 employees and 30 manufacturing facilities.

“The combination of SI Group and Addivant creates a global leader in the performance additives market with backward integration into key chemical intermediates. It is also expected to unlock significant earnings growth from both commercial and cost synergies,” said SK Capital Managing Director Barry Siadat.

Jack Norris, a managing director of SK Capital Partners, added, “In joining our portfolio of chemicals and pharmaceuticals businesses, SI Group will gain access to certain technologies and relationships to accelerate growth and bring novel solutions to the market.”

“The combination of Addivant and SI Group has resulted in a world-class organization with significant talent, technology and assets,” said Frank Bozich, SI Group CEO.

John Steitz, CEO of SI Group’s Additives segment, added, “Our combined organization is a powerful innovation engine well-positioned to create significant value for our customers and business partners.”

Latham & Watkins LLP acted as legal counsel to SK Capital and committed debt financing was provided by JPMorgan Chase Bank, N.A., HSBC Securities (USA) Inc., Deutsche Bank Securities Inc., Bank of America, N.A., KeyBanc Capital Markets Inc., Citigroup Global Markets, Inc., and Citizens Bank, N.A. Baker Botts LLP and HSBC Securities (USA) Inc. acted as legal counsel and exclusive financial advisor, respectively, to SI Group.

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