Kraton acquire Arizona Chemical $1.37 billion in cash

Kraton to acquire Arizona Chemical for $1.37 billion in cash

10:47 AM, 28th September 2015
Kraton to acquire Arizona Chemical for $1.37 billion in cash
Kevin Fogarty, president and CEO, Kraton. (File photo)

HOUSTON, US: Kraton Performance Polymers Inc said it agreed to acquire capital stock of privately held Arizona Chemical Holdings Corporation for $1.37 billion in an all cash deal. The acquisition is expected to close in late 2015 or early 2016.

Arizona Chemical is a producer of high-value performance products and specialty chemicals derived from non-hydrocarbon, renewable raw materials. Its end use market exposure is highly complementary with that of Kraton, particularly in markets such as adhesives, roads and construction, coatings and oilfield chemicals.

“The acquisition of Arizona Chemical is consistent with our stated strategy and it creates new opportunities to deepen our customer relationships by expanding Kraton’s presence in our core markets, where more than 50 percent of Arizona Chemical’s sales are directed,” said Kevin Fogarty, president and CEO, Kraton.

“Kraton and Arizona Chemical are known as providers of high quality products and innovations in their respective specialty markets,” said Dan Smith, chairman, board of directors, Kraton.

“Arizona Chemical’s renewable product and technology offerings will help us reduce our overall exposure to hydrocarbon-based feedstocks,” said Fogarty.

“I want to compliment Arizona Chemical’s leadership team, in particular Kees Verhaar, its president and CEO since 2008. We look forward to working with the team to capitalize on opportunities and further expand Arizona’s portfolio into new markets and geographies,” added Fogarty.

The seller of Arizona Chemical is AZC Holding Company LLC, which is principally owned by investment funds managed by American Securities LLC.

Financialadvisors for Kraton are Lazard, JP Morgan Securities LLC and Nomura Securities International Inc and legal advisors are Baker Botts LLP and Cleary Gottlieb Steen & Hamilton LLP.

Financial advisors for the sellers are Credit Suisse and Morgan Stanley and the legal advisor is Weil, Gotshal & Manges LLP.

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