PCCR USA, Inc., a subsidiary of leading Southern European investment group Investindustrial, has signed an agreement with Momentive Specialty Chemicals Inc. to acquire its North American coatings and composites resins business.
The acquired business is headquartered in Carpentersville, near Chicago and operates four manufacturing facilities located in Texas, Illinois, Georgia and California. It recorded 2010 sales of approximately USD230 million, employs 225 associates and is a leading provider throughout North America of resins for coating formulators and composite moulders, serving a long-standing, blue-chip customer base.
This acquisition is a continuation of the build-up of assets Investindustrial is carrying out in specialty chemicals at this stage in the cycle. Currently they include Polynt, a leading polymers and resins business and AEB, a biochemical producer of food and beverage additives. Less than a quarter of the combined sales of Investindustrial’s assets in specialty chemicals are in Italy, and sales to outside of Europe have reached 40 per cent and are growing at a higher rate. Combined sales of Investindustrial’s specialty chemical build-ups now stand at approximately USD1.2 billion, i.e. at a scale from which to be able to continue consolidation of the market starting from a Southern European base.
“This business is an excellent fit with our existing operations in specialty chemicals and will provide us with a significant new presence in the North American marketplace from which to grow further in this industry,” says Andrea C Bonomi, Chairman of Investindustrial.
The North American acquisition is further evidence of Investindustrial’s active ownership and global capabilities to implement international expansion plans, both organically and through acquisition. Investindustrial operates out of offices in Europe, North America and Asia, and was able to ensure a seamless execution of this transaction with its office in New York and its internal sector-specific business development team. Similarly, the group’s Shanghai office played a key role in the development and sale of Italmatch, a highly successful phosphorous based chemicals company that Investindustrial sold in November 2010.
This acquisition is a strong sign of Investindustrial’s confidence in the chemical business since its portfolio companies have ridden the recession successfully and are ready to expand into new markets and applications.
Terms of the agreement have not been disclosed, and the transaction is subject to customary conditions.
