NEW YORK—Private equity firm SK Capital Partners plans to acquire the antioxidant and UV stabilizer solutions business of Chemtura Corp., of Middlebury, Conn.
New York-based SK Capital Partners said it signed an asset purchase agreement to buy the business for about $200 million. The transaction is expected to close at the end of 2012 or early 2013.
"Their business is a global business. They provide additives to the plastics and rubber industries," said Barry Siadat, a managing director at SK Capital Partners. "We will build around it. We see some strong possibilities, especially in antioxidants."
Siadat said the deal will include six plants, including two in the U.S., two in Europe, one in the Middle East and one in Asia. It also includes shared facilities in Canada, Mexico, Brazil, Italy and Taiwan.
The business is a supplier of additives including antioxidants, antiozonants, intermediates and inhibitors, polymer modifiers and UV stabilizers.
Siadat said the business unit's heritage draws from previous associations with Uniroyal, Great Lakes Chemical Corp. and GE Plastics, and that SK Capital estimates it could generate revenues of more than $500 million a year.
He said it will operate as separate business and that a new name will be announced at a later date.
This story was written by Frank Antosiewicz of Plastics News.