SINGAPORE (ICIS)--French chemical major Arkema announced on Monday it is planning to acquire Chinese companies Hipro Polymers and Casda Biomaterials as part of its continued expansion in the specialty polyamides market.
The financial terms of the project is based on an enterprise value of $365m (€270m) for 100% of the capital of both companies, the company said in a statement.
Hipro Polymers is a producer of bio-sourced polyamide 10,10, while Casda Biomaterials is a manufacturer of sebacic acid, which is derived from castor oil and used particularly to manufacture polyamide 10,10.
Both companies are predominantly owned by a joint venture between China’s Feixiang Chemicals and US-based equity firm Bain Capital.
Through the acquisition of Casda Biomaterials, Arkema will integrate sebacic acid as a feedstock for the production of polyamide 10,10, the company said.
The acquisition is subject to the approval by the Chinese authorities and operations are expected to be finalised in early 2012, Arkema added.
($1 = €0.74)
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