- Mergers & Acquisitions
Stepan acquires specialty chemical producer PerformanX
Stepan Company, a major manufacturer of specialty and intermediate chemicals used in a broad range of industries based in Northbrook, Illinois, U.S.A., has entered into an agreement to acquire the surfactant business and associated assets of PerformanX Specialty Chemicals, LLC.
Based in Westerville, Ohio, U.S.A., PerformanX Specialty Chemicals, a producer of surfactants and related chemistries, offers a selective lineup of products and custom formulations including ethoxylates, disinfectants, lubricant additives and various formulated specialty products. It serves strategic markets that range from cleaners and detergents to personal care, oil and gas, paints and coatings, pulp and paper and industrial.
The acquisition will include intellectual property, commercial relationships, and inventory. The definitive agreement is subject to normal closing conditions and the transaction is expected to close in the third quarter of 2022.
“PerformanX is a strong strategic fit within Stepan’s Surfactants business and provides attractive market diversification opportunities for our alkoxylation product line,” said Scott R. Behrens, president and chief executive officer of Stepan Company.
The acquisition of PerformanX’s business should increase annual revenue by approximately USD20 million and be accretive to Stepan’s EBITDA margin, Behrens said.
In 2021, Stepan Company announced plans to build and operate a new alkoxylation plant at its existing Pasadena, Texas, U.S.A., facility. Alkoxylates are a core surfactant technology critical to the agricultural, oilfield, construction, pulp and paper, lubricant and household end use markets. Stepan’s USD245 million investment is expected to provide flexible capacity of 75,000 metric tons per year, capable of both ethoxylation and propoxylation, and positions Stepan Company to serve growing global demand. The new alkoxylation capacity in Pasadena is expected to come online in early 2024.