SCHENECTADY, N.Y.—SI Group Inc., a global performance additive and chemical supplier, will sell a majority of its industrial resins business to ASK Chemicals, based in Hilden, Germany.
Terms of the transaction, which is expected to be finalized later this year, were not disclosed.
"We remain confident this is the right strategic move for our employees and our business. ASK Chemicals has proven industry expertise that will add significant value and continuously enhance these businesses," said David Bradley, president and CEO of SI Group. "The deal also allows us to focus more intentionally on building and growing our portfolio as a performance additives powerhouse."
SI Group will retain its resins businesses in the U.S. and China, but will carve out related businesses (to the industrial resins segment) in Rio Claro, Brazil; Ranjangaon, India; and Johannesburg, South Africa, "including the manufacture of rubber and adhesives, oil field, surfactants, and foundry products in Brazil and will operate tolling agreements with ASK."
The sale includes products, technology and manufacturing machinery and systems, and allows ASK to place a greater focus on its resins segment, which provides chemicals for the paints and coatings, fertilizer coating and friction pads and composite industries.
ASK's flagship service is in the manufacturing of foundry consumables, as well as related technical support services. The company is owned by New York City-based private equity firm Rhone Group.