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Arizona Chemical on the Lookout for Buyers

Thursday, December 4, 2014  
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Arizona Chemical on the lookout for buyers: Reuters

Posted on Wednesday, 03 December 2014 11:34

US chemical manufacturer Arizona Chemical is mulling over a possible sale of the business, people with knowledge of the matter told Reuters.

According to the sources, who did not wish to be identified, a deal could value the company at more than USD 1.50 billion, including debt.

Arizona Chemical, which is majority owned by private equity firm American Securities, makes pine-based chemicals for use in fragrances, plastics and household cleaners, among other products.

Reuters’ sources said a number of investment banks have been interviewed about potentially advising on the planned sale, but as yet none have been appointed.

None of the parties involved have commented on the report.

Arizona Chemical claims to be the leading producer and refiner of pine chemicals; its products are also used in inks, paints and rubber items.

The company was founded in 1930 as a joint venture between International Paper and American Cyanamid and was initially based in Camp Verde.

It is now headquartered in Florida and is known for a manufacturing process using Crude Tall Oil and Crude Sulphate Turpentine.

Arizona Chemical currently has nine manufacturing plants throughout the US and Europe, as well as three research and development laboratories in Almere, Savannah and Shanghai.

American Securities has owned the company since November 2010, when it paid an undisclosed sum to buy a controlling share of the business from Rhone Capital.

There have been 63 announced transactions targeting North American chemicals manufacturers in 2014 to date, according to Zephyr, the M&A database published by Bureau van Dijk.

The most valuable of these was Albemarle’s acquisition of US-headquartered Rockwood Holdings, which was announced in July and is expected to complete during the first quarter of 2015, subject to the go ahead from regulatory bodies.

Other companies targeted in the year to date include PetroLogistics, Platform Specialty Products and Chemtrade Logistics Income Fund.

© Zephus Ltd