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Emerald to Sell Its Specialty Chemicals Businesses to DyStar

Published on 2016-05-10. Author : SpecialChem

Emerald Performance Materials, LLC has reached an agreement to sell its Emerald Specialties and Polymer Additives and Nitriles business groups to DyStar LP. The sale involves five of the company’s nine plants, specifically the dedicated plants in Charlotte, NC, Cincinnati, OH, Cheyenne, WY, Henry, IL, and a portion of a shared site in Akron, OH. Terms of the transaction were not disclosed.

Emerald Performance Materials
Fig. 1: Emerald Performance Materials

In a separate transaction, DyStar LP will sell the Polymer Additives and Nitriles businesses to Jiangsu Sinorgchem Technology Co., Ltd., a subsidiary of Sinochem Group, a state-owned Chinese company with core businesses in the energy, agriculture, chemicals, real estate and financial service.

Upon completion of the dual transactions, DyStar LP will retain the specialties businesses, which adds three (3) new manufacturing sites to DyStar’s US business platform.
DyStar® to acquire specialty chemical businesses from Emerald
Fig. 2: DyStar® to acquire specialty chemical
businesses from Emerald

“We are enthusiastic about the growth that the combination will foster. This high quality acquisition will significantly strengthen DyStar’s position in the chemical industry and we are uniquely positioned to take advantage of the new revenue growth and synergy opportunities,” said Ruan Weixiang, the Chairman of DyStar group. “We are confident that the business will be a good opportunity for DyStar to grow in future.”

The acquisition adds a broad product portfolio that services many multi-national consumer goods brands to DyStar’s global product line which services multi-national retail brands. On a combined basis, the company is expected to:
  • Expand the new business groups to DyStar’s global business reach
  • Leverage DyStar’s strong procurement platform to reduce costs
  • Synergize the technical know-how across all businesses

DyStar’s employees will welcome Emerald’s team of experts. Like DyStar’s employees, the employees and management teams of Emerald’s business lines have a strong focus on innovation and quality. The DyStar team is looking forward to working with their new colleagues and combining their knowledge to bring the company to a new level of success.

Lazard served as the exclusive financial advisor, Allen & Overy served as the legal advisor to DyStar LP, and Weil Gotshal & Manges LLP served as the legal advisor to Emerald in connection with the acquisition by DyStar LP of these specialty chemical units from Emerald.

The sale is expected to close in the third quarter of 2016, subject to standard regulatory approvals.

About Emerald

Emerald Performance Materials produces and markets technologically advanced specialty chemicals for a broad range of food and industrial applications. Emerald® products play a variety of roles in the products that are consumed and used every day, enabling them to last longer, look, smell, taste or perform better. Emerald products are used in aerospace, food, beverages, cosmetics, toothpaste, household products, paint, tires, automobiles, sports gear and many other applications. Headquartered in Cuyahoga Falls, Ohio, Emerald has four business groups, nine operations and more than 800 employees.

About DyStar Group

DyStar Group is a solution provider, offering customers across the globe a complete range of colorants, auxiliaries and services. The DyStar Group has offices, competence centers, agencies and production plants in over 50 countries to ensure the availability of expertise in all important markets. With a heritage of more than a century of product development and innovation for the textile and leather industry, DyStar has developed into new markets and now in addition serves the paper, plastic and many other specialty chemical industries. Source: Emerald Performance Materials

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