Canada's Chemtrade Logistics in talks to buy General Chemical for $1 bn: report
07 Nov 2013
Canadian chemicals giant Chemtrade Logistics Inc in advanced talks to buy specialty chemicals company General Chemical Corp in a $1 billion deal, Reuters yesterday reported, citing two people familiar with the matter.
General Chemical, owned by private equity firm American Securities, is close to finalising an agreement with Chemtrade over the next few weeks, the report said.
American Securities has also held talks with other interested parties, including private equity firm Apollo Global Management LLC, it added.
Founded in 1899, New Jersey-based General Chemical is a supplier of high-quality aluminum and iron-based coagulants for potable and waste-water treatment. It operates a network of over 40 manufacturing plants and terminals in the US and Canada, giving it the ability to serve the North American water and waste-water treatment markets.
It also manufactures several products that are approved for use in the food and beverage industry and produces high-purity vaccine adjuvants and potassium chloride used in sports drinks, low or no sodium foods, electrolyte replacement pharmaceuticals and intravenous solutions for the pharmaceutical industry.
It also produces chemicals for the pulp and paper industry, performance chemicals for industrial processing as well as products for agriculture and oil refining.
Chemtrade is one of the world's largest suppliers of sulphuric acid, liquid sulphur dioxide (SO2) and sodium hydrosulphite (SHS), and a leading North American processor of spent acid.
The Ontario-based company is also a leading regional supplier of sulphur, sodium chlorate and water treatment chemicals, one of only two North American producers of phosphorous pentasulphide and also produces zinc oxide at three North American locations.
Chemtrade obtains these products from its own production facilities and through long-term marketing services agreements and distributes them to customers around the world.
It has a market cap of around $700 million and posted net income of C$39 million in 2012 on revenues of C$919 million.