Thierry Le Hénaff, Arkema chairman and CEO, said: This acquisition is a great opportunity in many respects. It will help us boost our position in China, one of Arkema’s geographic priorities for the last five years. With polyamide 10.10, it aptly complements our high added value polyamide 11 and 12 product range, and fits in well with our growth strategy in green chemistry.”
Both acquisitions are consistent with Arkema’s strategy to develop performance products and the programme presented by the group in November 2010 to acquire around €1bn of sales.
Both companies report aggregate sales estimated at $230m for 2011, and employ 750 people on two sites in China. The acquisition price is based on an enterprise value of $365m for 100% of the capital of both companies, which are predominantly owned by a joint venture between privately owned Chinese specialty chemical company, Feixiang Chemicals, and Bain Capital, a global alternative asset manager with over US$60bn under management.
In anticipation of the rapid development expected over the next few years, Hipro Polymers’ modern and competitive industrial site, based in Zhangjiagang, 110km from Shanghai, recently benefited from new investments to triple its production capacity.
Source: Arkema
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