Following clearance from the European Commission, US-based Valtris Specialty Chemicals, a portfolio company of private equity firm H.I.G. Capital, has completed its €111 million purchase of Ineos Baleycourt and Ineos ChloroToluenes (ICT).

“ICT and Baleycourt are highly strategic acquisitions with strong secular growth drivers that significantly enhance our product portfolio, expand our European presence and strengthen our technology and production capabilities,” said Paul Angus, CEO of Valtris. Through the acquisition, he said Valtris will be able to offer customers an even broader solution palette and pursue attractive new growth opportunities.

H.I.G. Capital’s managing director Keval Patel added that ICT and Baleycourt have capabilities that are highly complementary to those of Valtris, which manufactures specialty chemicals primarily for use as additives in plastics production and processing.

ICT is a leading producer of chlorinated toluenes and related derivatives used in coatings, flavor & fragrance, personal care and pharmaceutical applications, operating plants in Belgium and the Netherlands. Based in northeast France, Ineos Baleycourt makes products for the polymer additive, lubricant, renewable energy and food markets.

According to Moody’s Investors Service, the acquisition will double Valtris’s revenue base to over $700 million, supplement its product offerings with environmentally friendly plasticizers and offer growth opportunities in benzyl alcohol and derivatives.

The ratings agency added that the combined businesses will also have a larger exposure to more resilient end markets such as healthcare, paints and coatings, personal care, automotive fuels and agriculture, in addition to Valtris's existing customers in the building, transportation and industrial sectors.

Valtris Specialty Chemicals, based in Independence, Ohio, USA, was formerly the polymer additives division of Ferro Corp. It was bought by H.I.G. Capital in 2014 and subsequently renamed. In April 2016, Valtris acquired Akcros Holdings, a provider of specialty chemicals used as additives in polymers and paints and coatings.