Innospec Inc. has acquired Chemsil Silicones Inc. and the Chemtec Chemical Co., from its private owners. Chemsil will become part of Innospec’s Performance Chemicals business, which develops and markets a range of surfactants and emollients to the personal care industry. Chemtec will continue to operate as a key distributor in this market.
“Personal care is the strategic core of our Performance Chemicals business, and we have been seeking to add to both the technology base and the geographical footprint of this business. We are delighted to acquire Chemsil, which brings complementary technologies to our current portfolio, and Chemtec, which provides us with a solid base in the important West Coast market. We expect the acquisition to be immediately accretive," noted Innospec presidentand CEO Patrick Williams.
“Although we have been pleased with the growth of our companies over the past few years, we have concluded with our lead advisors CIM Partners that we needed to be part of a larger group to realize our ambitions to grow our presence in the United States, and to market our technologies internationally. Joining Innospec provides us with the infrastructure and critical mass to accelerate that expansion and focus on future technologies,” added James Harrison, president of Chemsil and Chemtec.
“Chemsil products are a great complement to our existing product portfolio, and we look forward to providing our customers a wider range of products for these applications, making Innospec a more valuable supplier to this industry. Our strategy is to continue to invest in R&D and geographical expansion, to establish Innospec as an innovation leader in personal care,” explained Bruce McDonald, VP of Innospec Performance Chemicals in the Americas.
The acquisition has been funded through the successful negotiation of an amendment and increase to the company’s existing revolving credit facility agreement from US $100 million to US $150 million. The secured facility remains available through to December 2016. In addition, the amendment allows the company to request a further amount of up to US $50 million to be committed by various lenders.