NYSE-listed speciality chemicals and home care products maker has struck a deal to acquire the core bromine assets of Avantha Group’s privately held firm Solaris ChemTech for an undisclosed sum. Solaris is the largest producer of bromine and bromine-related products in India and the deal would give Chemtura a key position in the market at one shot.
The acquisition includes two manufacturing facilities, an established R&D centre and a multi-products facility in Gujarat. The transaction is expected to close by the end of 2012.
“The acquisition of Solaris ChemTech’s bromine assets will further strengthen our bromine position and provide our customers with increased security of supply through further diversification of our bromine supply sources. With the help of our technology, we can improve productivity and efficiency, creating significant value,” said Craig A. Rogerson, president and CEO of Chemtura.
The bromine assets business will become an integral part of Chemtura’s Great Lakes Solutions business and Chemtura’s new subsidiary will be headquartered in Delhi. The Great Lakes Solutions unit is into flame-retardant products and solutions and brominated performance products. Its flame retardants are used in various applications, such as electronic components, electrical enclosures and building products including insulation and furniture foam. The brominated performance products are used in energy production, water treatment, automotive/transportation, dyes, biocides, pharmaceuticals and crop protection.
“The incremental bromine assets also bolster our abilities to meet growth in customer requirements including the emerging global demand for bromine derivatives for mercury control in coal-fired power plants,” said Anne Noonan, Chemtura’s vice-president for strategic business development and president of Great Lakes Solutions.
Delhi-based Solaris ChemTech is a part of the $4 billion Avantha Group. The sale would leave Solaris ChemTech with its other product lines of chlor-alkali, ortho-phosphoric acid and speciality chemicals & active pharmaceutical ingredients (API).
According to the data compiled by VCCEdge, the financial research platform of VCCircle, Solaris’ top line growth had become stunted during FY08-FY11 and the company had slipped into losses during FY10 and FY11.
Avantha Group chief had earlier indicated that he would be more bullish about the speciality chemicals and API business of Solaris.
(Edited by Sanghamitra Mandal)