SCHENECTADY, N.Y.—SI Group entered into an agreement to sell the majority of its global industrial resin business and its Brazilian specialty business to ASK Chemicals GmbH.
The transaction is expected to close later in 2019, according to a SI Group news release.
It includes SI Group's industrial resins products and associated manufacturing sites in Rio Claro, Brazil; Ranjangaon, India; and Johannesburg and Durban, both in South Africa, as well licensed technology and tolling agreements, SI Group said.
SI Group will carve out related businesses at the four sites, including the manufacture of global rubber and adhesives and oilfield products, as well as foundry products in Brazil.
The decision to sell the portion of the business provides an opportunity to reshape SI Group's portfolio, CEO and President David Bradley said in a statement.
"The sale of this business provides proprietary technology and know-how in the industrial resins business to ASK while realigning our focus around performance additives," Bradley said.
ASK, a portfolio company of private equity firm Rhone Group L.L.C., manufactures binders, coatings, feeders, filters and release agents. Headquartered in Hilden, Germany, it also produces metallurgical products such as inoculants.
SI Group is a developer and manufacturer of performance additives, process solutions, pharmaceuticals and chemical intermediates. It serves industries including plastics, oilfield, rubber and fuels and lubricants, among others. It operates more than 30 manufacturing facilities with more than 3,000 employees, and is headquartered in Schenectady.