Pine chemical producer Arizona Chemical seeks to sell itself for $1.5 bn plus
03 Dec 2014
Arizona Chemical Holdings Corp is exploring a sale that could value the largest producer of pine chemicals used in fragrances, plastics and household cleaners at over $1.5 billion, including debt, Reuters yesterday reported, citing people familiar with the matter.
Private equity firm American Securities, majority owner of Arizona Chemical, has met investment banks to appoint a financial advisor on the sale of the company, the report said.
American Securities acquired a 75-per cent stake in Arizona Chemical in 2010, and former majority owner Rhone Capital holds the remaining 25 per cent.
Arizona Chemical provides bio-based chemical solutions to the adhesives, roads and construction, tyres and chemical industry. Chemical intermediates include biorenewable fuels, lubricants, coatings, fuel additives, and mining and oilfield segments.
Its primary products are pine tree-based chemicals such as fatty acids, rosin esters, and terpenes, which are used in the manufacture of a wide variety of products, including adhesives, household cleaners, hydraulic fluids, inks, paints, personal care products, and plastics.
The Florida-based company has ten chemical manufacturing plants located in the US, the UK, France, Germany, Sweden and Finland, and has annual sales of around $1 billion.
