SI Sells Industrial Resins to ASK Chemicals
SI Group, a US manufacturer of performance additives, process solutions, pharmaceuticals and chemical intermediates, has agreed to sell the majority of its global industrial resin businesses plus its Brazilian specialty business to Germany’s ASK Chemicals.
The transaction includes SI’s industrial resins products and associated manufacturing sites in Rio Claro, Brazil; Ranjangaon, India; and Johannesburg and Durban, South Africa, along with licensed technology and worldwide multiple tolling agreements.
SI added that it will carve out related businesses at the four sites, including the manufacture of global rubber & adhesives and oilfield products, as well as foundry products in Brazil, and will operate tolling agreements with ASK.
Financial terms of the deal, which is expected to close later this year, were not revealed.
ASK Chemicals, formerly a joint venture between specialty chemical companies Clariant and Ashland, is one of the world’s leading suppliers of foundry chemicals. The Hilden-headquartered company was bought by private equity firm Rhone Group for $352 million in 2014.
“This acquisition is an important step in our growth strategy. It substantially reinforces our position in the foundry business and helps us to accelerate our penetration in certain growth countries,” said ASK CEO Frank Coenen. “At the same time, it allows us to take a first step in building a phenolic industrial resins business, an attractive market with promising growth opportunities.”
SI’s president and CEO, David Bradley, said the decision to sell the assets provides the company with the opportunity to reshape its portfolio and realign its focus around performance additives.
The Schenectady, New York-headquartered group has been part of SK Capital since October 2018.