Italmatch Agrees Merger with Detrex
In its third deal so far this year, Italian specialty chemicals group Italmatch has agreed to acquire US company Detrex. Under the terms of the agreement, a newly formed subsidiary of Italmatch will buy Detrex for $27 per share in cash.
Based in Cleveland, Ohio, Detrex manufactures additives for industrial petroleum products, high-purity hydrochloric acid for the semiconductor industry and specialty chemicals. The company generated net sales of $37.5 million and EBITDA of $1.9 million in 2016.
The merger is expected to complete by Dec. 31, subject to the approval of at least two-thirds of Detrex’s shareholders, as well as the usual closing conditions. The companies said directors and major shareholders representing approximately 52% of the US company’s shares have agreed to vote in favor of the proposal, unless a superior offer as defined in the agreement is received.
Thomas Mark, president and CEO of Detrex, called the merger a great opportunity to be part of an organization with deeper resources and operational scale in the specialty chemicals business.
For Italmatch, the acquisition brings highly complementary products, synergies and expanded geographical coverage. Sergio Iorio, managing director of Italmatch Chemicals Group, explained that Elco (Detrex’s operating subsidiary) has a distinctive and complementary position in extreme pressure (EP) additives and Ad-pack for grease and metalworking fluids. In addition, Elco brings a focus on markets in North America and Latin America, complementing Italmatch’s presence in Europe, Middle East & Africa.
Italmatch has been pursuing acquisitions in recent years as part of its strategy to develop and grow its business overseas. Its two other acquisitions this year were Sudamfos do Brasil in October and French start-up Magpie Polymers in July.