Safic-Alcan expands N.A. reach with Rit-Chem purchase

PITTSBURGH—Safic-Alcan Group is looking for healthy growth, and with its latest acquisition, the French distributor of specialty chemicals says it's strengthening its presence in North America.

Safic-Alcan in September acquired 100 percent of New York-based Rit-Chem Inc., a family-operated boutique chemical distributor with five warehouses in the U.S. and sales in more than 15 countries.

Rit-Chem, founded in 1972 by Henry Ritell, specializes in the performance and life science sectors in the U.S. and will become part of Safic-Alcan's American affiliate, Uniontown, Ohio-based ChemSpec Ltd., according to Safic-Alcan.

At this year's International Elastomer Conference, held Oct. 4-7 in Pittsburgh, ChemSpec promoted its parent company's acquisition.

Safic-Alcan is involved in many different facets, such as performance products like cosmetic life science as well as rubber, plastics, adhesives, sealing and coatings, Chris Wagner, marketing and law director at ChemSpec, told Rubber News at the IEC.

"(Safic-Alcan is) really looking for growth in all those different facets of the market as a distributor," he said.

Safic-Alcan has subsidiaries, mostly across Europe, Wagner said, but also in Asia, North America, Mexico and Canada, noting that ChemSpec USA manages the Canadian and Mexican businesses.

"Safic is always aggressive about looking for healthy growth," he said, adding that the parent company has a division of members dedicated to mergers and acquisitions that is "always looking for opportunities."

"The acquisition of Rit-Chem is a strong step forward for our ambitions in North America, and will complement perfectly ChemSpec's current activities," Yann Lissillour, head of mergers and acquisitions for Safic-Alcan, said in the September news release.

David Moreland, president and CEO of ChemSpec, said the acquisition came at the right time for both Rit-Chem and ChemSpec.

The second generation of the Ritell family—brothers Bruce, Gary and Wayne—were seeking a "good exit plan" for when they aged out of the business, Moreland said. As Safic-Alcan actively seeks opportunities for growth, the acquisition made sense.

"It was a good, mutual fit for both parties," he said.

"The Ritell's second generation will remain, ensuring a smooth transition," Moreland said in the news release, adding that the company looks forward to welcoming the Ritell brothers and other Rit-Chem employees.

Additional benefits to the acquisition, he said, is that Rit-Chem has two "blue chip" suppliers that were key to expanding ChemSpec's portfolio—Kum Yang Co. Ltd. out of South Korea, which supplies blowing agents; and Ineos Group Ltd. in London, which will give ChemSpec a fuller range of polyisobutylene.

"Our product range and their product range fit in real nicely," Moreland said. "Then they have some specialty plasticizers that also fit into our range of plasticizers, so there are no duplications."

He said the companies also have similar business philosophies. "They're transparent with their suppliers the same way we are, so that all fits nicely," he said.

Safic-Alcan develops polymers, materials and additives for the rubber, coatings, adhesives, thermoplastics, polyurethane, lubricants, detergency, cosmetics, pharmaceuticals and nutraceuticals industries, according to the company. It has 25 offices located in Europe, the Middle East, Africa and North America. The company reported 2020 sales of about $685 million.

"Rubber has always been our bread and butter and continues to be," Wagner said. "We obviously look for organic growth and bringing on other suppliers and growing our own product lines."

Wagner highlighted the company's growth in the plastics manufacturing industry and coatings, adhesives, sealants and elastomer applications, as well as its cosmetics line, noting the company also has brought on staff to support these industries.

"In the last 10 years, we've averaged at least two acquisitions on an annual basis," Moreland said. "This is just one step."