SK Capital acquire performance additives manufacturer in US

SK Capital to acquire performance additives manufacturer in US

6:55 AM, 4th June 2018
SK Capital to acquire performance additives manufacturer in US

NEW YORK, US: SK Capital Partners has entered into an agreement to acquire SI Group, a leading global developer and manufacturer of performance additives and intermediates.

Headquartered in Schenectady, New York, SI Group operates 20 manufacturing facilities on five continents with more than $1 billion in annual sales and over 2,800 employees worldwide.

SI Group is being acquired from the descendants of W Howard Wright, who founded the company in 1906. At the close of the transaction, SK Capital will combine SI Group and Addivant, a leading global supplier of additives including antioxidants, antiozonants, inhibitors, polymer modifiers and UV stabilizers used by customers to improve the production and performance properties of polymers, plastics and rubbers. SK Capital has owned Addivant since 2013.

The transaction is expected to close in the second half of 2018.

“We are excited that SI Group will be joining the SK Capital portfolio of chemicals and pharmaceuticals businesses. SI Group has an excellent fit with the technologies and end markets of several SK Capital businesses, including Addivant in additives, Noramco in the area of pain management pharmaceuticals, and TPC Group in building block chemicals for certain SI Group products. These technology and market connections will enhance and accelerate the continued growth and transformation of SI Group. Additionally, by combining the complementary strengths of SI Group and Addivant, we will be creating a global technology and industry leader in plastic, lubricant, oilfield and rubber additives,” said Barry Siadat, a co-founder and managing director of SK Capital.

“SK Capital is a firm known for its sound business practices, deep industry experience, and impressive portfolio of companies in the chemicals sector. We are thrilled by the prospect of SI Group joining SK Capital, as it will enhance the company’s performance additives and intermediates business in the plastic, oil and gas, pharmaceutical and rubber sectors. We expect to see great things in the years ahead,” added Wallace Graham, chairman of SI Group.

Latham & Watkins LLP acted as legal counsel to SK Capital and committed debt financing was provided by JPMorgan Chase Bank, NA HSBC Securities (USA) Inc, Deutsche Bank Securities Inc.

Bank of America, NA Baker Botts LLP and HSBC Securities (USA) Inc acted as legal counsel and exclusive financial advisor, respectively to SI Group.

© Worldofchemicals News 



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