Merger creates largest zinc oxide manufacturer in the U.S.

HOUSTON—One of the largest geographic regions for the chemical industry in the U.S. just got another major addition. Private investment firm Aterian has merged zinc oxide manufacturers U.S. Zinc Inc. and the recently acquired EverZinc.

Financial terms of the May 31 transaction were not disclosed.

"We're excited to partner with Aterian and the board to lead this new organization forward into the future," said EverZinc CEO Vincent Dujardin, who will lead the combined company as president and CEO. "This strategic combination brings together two industry pioneers. By combining our comprehensive zinc chemistry platforms, employee base, proven R&D and technology capabilities and specializations, we will further our leadership in catapulting the new organization years ahead on the technology curve."

The new company will advance under the EverZinc name, according to Aterian.

New York City-based Aterian acquired U.S. Zinc in 2018. Aterian acquired EverZinc as part of the May 31 transaction and then merged the two companies, according to a spokesperson for Aterian.

"We built a long-term thesis around zinc chemistry, starting with our platform investment in U.S. Zinc," said Christopher H. Thomas, co-founder and partner at Aterian. "As one of the most widely available and sustainable metals in the world, zinc is uniquely recyclable and has applications critical to our future.

"This investment further expands on our vision as the organization will continue to partner and innovate with its customers to lead the industry through technological and sustainable alternatives and solutions."

While both U.S. Zinc, based in Houston for 70 years, and EverZinc, a global firm with headquarters in Belgium, produce similar French process zinc oxides and powders, each will look to continue their inroads in personal care, storage and rechargeable batteries, pharmaceuticals, chemicals, textiles, agriculture, feed, corrosion-inhibiting paints and coatings, and rubber.

Specifically, EverZinc maintains a focus on rechargeable zinc batteries for use in energy grids, telecommunications, data centers and with UPS; and on the e-mobility side with scooters, wheelchairs, bikes and start-stop tech.

U.S. Zinc is a domestic producer of zinc oxide, fine zinc powder and zinc metal for the rubber and tire industry and maintains four facilities in Texas and Tennessee. EverZinc, an international supplier of zinc powders, zinc oxides, battery zinc powders and Zano, an ultra-fine zinc oxide, has another 10 facilities in Belgium, Canada, China, the Netherlands, Norway and Malaysia.

Moving forward, EverZinc officials say they will look to source feedstock raw materials from third-party, by-product sources for producing zinc oxide—like furnace dust from recycling galvanized steel or materials reclaimed from scrap tires.

By converting used zinc material already available in the marketplace, industry-wide sustainability can be encouraged, EverZinc said.

"Zinc can be recovered without a significant loss in quality, resulting in less need for virgin zinc and the air and water emissions, deforestation, energy consumption and waste that often results from mining and processing virgin zinc," the company stated in a June 1 release.

It can nourish and care, energize and innovate or protect and enhance—such are the virtues of zinc oxide and powders.

The zinc industry comprises a complex web of production, processing and end-use manufacturing, and as such EverZinc will look to balance a recovering tire industry with upticks in personal care, agriculture, packaging and medical markets.

While about 40 percent of the total zinc oxide market (from all producers of zinc oxide) in North America goes toward the rubber tire industry, the compound also can be found in dental care, sunscreens, fertilizers, livestock feeds, over-the-counter flu remedies, vitamins, tile glazes, paints, food additives and even electronics.

"Aterian will continue to support EverZinc through investment in capacity, technology and innovation," said Joshua Ciampa, managing director at Aterian. "Global applications for zinc are reaching a critical inflection point and we are pleased to be in a position to leverage our European or Asian technology for capacity in North America, and vice-versa."

During the French (or indirect) process by which zinc oxide is produced, zinc metal is placed in a solid form into huge muffle furnaces and heated to a molten form.

The molten zinc then is boiled in a different furnace, and the boiling zinc ultimately is introduced to ambient air.

At that point, the zinc self-ignites and forms zinc oxide, a fine white powder that can be distributed as is, or in pellet form.

For any rubber compound, zinc oxide acts as an activator for vulcanization, adding strength and improving a compound's resistance to heat, abrasion and ultraviolet degradation.

"Zinc is the fourth most common metal in use in the world and has made considerable inroads as a potential material of choice in nascent markets," Aterian said.

In personal care, for instance, zinc minerals are seen as a better alternative to existing materials in sunscreens and skin care products. For energy storage, new battery combinations such as zinc-air and nickel-zinc are becoming viable anode material alternatives to existing batteries.

"This combination will strengthen our global footprint, improve sourcing capabilities, diversify our business and allow our platform to better serve customers on a global scale," said Joel Hawthorne, president and CEO of U.S. Zinc.

Hawthorne will serve as vice chairman of the new EverZinc and a member on the combined company's board.

"We are eager to continue serving existing applications while cultivating new market streams for our zinc components," he said.