10 June 2005 13:03 [Source: ICIS news]
LONDON (CNI)--International Chemical Investors, the newly-established private investment group based in Frankfurt, Germany, announced on Friday the acquisition of five fine and specialty chemicals businesses from Germany's Rutgers .
The businesses, which have combined sales of around $120m (Euro98m) and employ 490 people, are the new group's first acquisition, according to Patrick Schnitzer, managing partner of ADL Capital Partners which is advising International Chemical Investors.
He told CNI that they are intended to form the nucleus of a larger organisation focused on mid-sized chemicals businesses with leading positions in niche markets.
Schnitzer said International Chemical Investors was looking at further acquisitions. "We have some [deals] that have developed fairly fast," he said. The group's next deal could be concluded in the next three months with an announcement in the fourth quarter, he said.
International Chemical Investors is looking initially at acquisitions in Germany but is also prepared to consider other areas in Europe and beyond.
Financial terms of the Rutgers deal, which is expected to be completed in August subject to regulatory approvals, were not disclosed.
The Rutgers businesses are the German and US fine chemicals divisions of Rutgers Chemicals in Mannheim and Augusta, Georgia; Rutgers Organics in Mannheim; Rutgers CarboTech in Essen; and the performance chemicals division of Rutgers Chemicals in Cincinnati, Ohio.
Schnitzer said the five businesses are focused on highly specialised markets and products. The biggest business, with a turnover of around $30m is fine chemicals which will be renamed WeylChem GmbH and WeylChem Corporation. It is involved in custom manufacturing and pharmaceutical and agrochemical intermediates/active ingredients.
International Chemical Investors plans to retain the name Rutgers Organics for the wood preservatives and fire retardants business.
Rutgers CarboTech, which makes activated carbon products for the water and gas filter industries, will be renamed CarboTech AC, and the Rutgers performance chemicals business, which supplies the consumer products industry, will be renamed Nease Corporation.
“The Rutgers Chemicals businesses have an excellent technology base and leading market positions," said Achim Riemann, managing director of International Chemical Investors in a statement. "To date, the businesses have been separately managed, focusing on their local markets and we are excited to support their global development, combining certain research and global marketing functions, applying our industry experience and exchanging best practice methods.”
Schnitzer said International Chemical Investors planned to exploit synergies between the businesses, particularly in fine chemicals. “We are looking forward to actively supporting the businesses in their organic growth, further development of their technology bases and global marketing as well as through additional complementary acquisitions,” he said in a statement.
He would not disclose the size of funds available to International Chemical Investors or quantify the size of future takeover targets. But Schnitzer indicated that the group had sufficient flexibility and financial backing to respond quickly to investment opportunities. The group's acquisition targets are expected to come, like the Rutgers deal, from large corporations wishing to dispose of non-core chemical activities.
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