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Ferro buys Delta assets & Cappelle, expanding its addressable market for pigments to $4 bn
FOCUS around the world. Recently, it signed a technical collaboration agreement with LPKF Laser & Electronic AG (of HannoverGarbsen, Germany) relating to the development of laser welding for plastics. Essentially this is a process for joining two plastics together using laser radiation. The plastics being welded have a transmissive upper layer and an absorbing lower layer, allowing the laser to heat the materials in the lower layer and bond them to another compatible material. The lower layer is often based on highly absorptive pigments, such as carbon black. LPKF sells the production equipment and process solutions, while Americhem provides the colorants for both the upper and lower layers. Laser welding of plastics was first commercialised in the electronics industry about 15 years ago and it is now becoming popular in the automotive sector, with the salient advantages of overall weight reduction and the absence of needing screws, rivets, adhesives or tape. Also, the process offers lower costs, minimal stresses on parts and components, and the ability to create complex three-dimensional shapes.
Original Source: Americhem Inc, 19 Jul 2016 (2000 Americhem Way, Cuyahoga Falls, OH 44221, USA, Website: http://www.americhem. com) © Americhem 2016. Original Source: Injection World, Sep 2016, 8 (Website: http:// www.amiplastics.com/mags) © Applied Market Information Ltd 2016
Ownership of Chromaflo transferred from Arsenal & Nord Capital to American Securities American Securities LLC (a private equity firm, based in New York) has agreed to purchase the entire assets and business of Chromaflo Technologies Inc (based in Ashtabula, OH). The transaction should be completed by the end of November 2016. Chromaflo was created as the world's largest manufacturer of pigment dispersions by the merger of Plasticolors with Evonik's global colorants business under the aegis of Arsenal Capital Partners (another private equity firm, based in New York). Chromaflo then extended its business with the acquisition of the Tint-Ayd colorants business of Elementis. (See also 'Focus on Pigments', Jul 2012, 6 & Feb 2013, 5). Towards the end of 2013, Chromaflo absorbed the global tinting colorants business of CPS Color (headquartered in Vantaa, Finland), thus adding more than $100 M to its annual global sales revenue and about 250 people to its global workforce. (See 'Focus on Pigments', Feb 2014, 5).
December 2016
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Chromaflo now has manufacturing facilities in Australia, Canada, China, Finland, the Netherlands and the US. It has more than 200 different product lines, encompassing 7000 products. Prior to the American Securities takeover, Arsenal Capital Partners had a majority stake in Chromaflo, while Nordic Capital Fund VI had a significant minority shareholding.
Original Source: Ink World, 6 Oct 2016, (Website: http://www.inkworldmagazine.com) © Rodman Media 2016
HIG Capital acquires majority stake in Dominion Colour HIG Capital, a global private equity firm based in Miami, has acquired a majority stake in Dominion Colour Corp (DCC, headquartered in Toronto). DCC is a major producer of organic and inorganic pigments, with 300 employees and six plants in Canada, the UK and the Netherlands, all of which are certified to ISO-9001 and ISO14001 standards. Mr Mike Klein (President & CEO of Dominion Colour) said: "We are delighted to welcome a new partner that shares our passion for product development and we are excited to announce that our fellow shareholder and Executive Vice President, Dr Mark Vincent, will stay on and become the new CEO of the business. This investment facilitates the orderly ownership succession and retirement of DCC's senior shareholder group who will remain as minority shareholders of the business. Mr Keval Patel (Managing Director of HIG Capital) said: "With its focus on developing innovative technical colour solutions, DCC provides a unique value proposition to its long-standing customers worldwide for their use in high-performance coatings, plastics and inks. We look forward to providing capital and strategic insight to continue to drive excellence and achieve the company's growth potential." DCC was originally incorporated in 1946 as a division of Canadian Wallpaper Manufacturers Ltd (CWM), making pigment dispersions for colouring wallpaper. In 1952, DCC built an organic pigments plant on a site in New Toronto. Three years later, facilities were installed for the manufacture of chrome yellow, moly orange, zinc and strontium chromate. In 1968, CWM became part of the Reed International group. In 1970, DCC commissioned new facilities for chrome yellow and moly orange production on a new site at Ajax (50 km northeast of Toronto). In 1988, Reed International sold DCC to Daishowa Forest Products, which in turn
sold it on during 1989 to Kikuchi Color & Chemicals Corp (of Tokyo). In March 1995, Cookson Pigments and DCC signed an agreement, whereby Cookson ceased manufacturing inorganic pigments at Newark, NJ and satisfied its sales commitments to customers by reselling pigments manufactured by DCC. In 1997, DCC purchased Cookson Pigments' order book and rights associated with the Krolor silica-encapsulated pigments range. European rights to use the Krolor brandname were acquired from Heubach (the former owners of the Newark site) in 2002. Effectively, pigment production at Newark was transferred to DCC's expanded facilities in Canada. (See 'Focus on Pigments', Apr 1995, 4 & Mar 1997, 5 & Feb 2003, 5). Meanwhile, DCC had purchased from Colours Newton a small pigments plant at Bromont (90 km east of Montreal) and Cia Venezolana de Pigmentos. (See 'Focus on Pigments', Apr 1999, 5 & Aug 2000, 5). In 2005, DCC purchased Holliday Dispersions, with a plant at Rossendale (30 km north of Manchester in the UK). In 2009, DCC's prominence in the UK increased when it purchased customer lists, brandnames and product formulations from the insolvent European Colour group. The manufacture of the Eljon and DyeCom products was promptly transferred from European Colours' Stockport complex to DCC's sites in Canada. (See 'Focus on Pigments', Nov 2005, 5 & Nov 2009, 6). In 2012, BASF sold its Irgazin and Irgacolor bismuth vanadate business and its indanthrone blue business to Dominion Colour: the products were subsequently rebranded as DCC Yellow (PY-184) and DCC Blue (PB-60). (See 'Focus on Pigments', Mar 2012, 4). Meanwhile, effective 25 March 2008, via an agreed management buy-out, Kikuchi sold all its shares in DCC to the existing team of senior executives, comprising Mr Mike Klein, Dr Mark Vincent, Mr Jack Nelligan and Mr Bob Ralph.
Dominion Colour Corp, 3 Oct 2016 (199 New Toronto Street, Toronto, ON M8Y´V 3X4, Canada, Website: http://www.dominioncolour. com) © Dominion Colour 2016
Ferro buys Delta assets & Cappelle, expanding its addressable market for pigments to $4 bn Ferro Corp recently made two important acquisitions to expand its global colorants business, paying a total of $60 M for
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FOCUS Cappelle Pigments (headquartered in Menen, Belgium) and certain assets belonging to Delta Performance Products (headquartered in Covington, GA). On a pro rata basis, the two acquisitions should add $76 M to Ferro's sales revenue and $11 M to adjusted earnings for the 2016 fiscal year. Mr Peter Thomas (Chairman, President & CEO of Ferro Corp) said: "These acquisitions are great additions to our growing Pigments business. Over the next 12-24 months, we expect to realise commercial and operating synergies from these acquisitions of $3-4 M. These acquisitions are much like the Nubiola acquisition we made last year. They both increase the breadth of options we can offer our customers, increase our technical capabilities and enhance our market position. The transactions will expand our addressable market for pigments by a factor of four, to approximately $4 bn. These businesses demonstrate the value proposition of our Pigments business. We create value for our customers by combining and manipulating pigments to produce specialised colour solutions that provide functional attributes for our customers' end products, or improve the effectiveness and efficiency of their supply chain and manufacturing processes." The purchase of certain assets of Delta Performance Products was completed on 1 August 2016. The relevant assets produce customised colorant blends, utilising Ferro's complex inorganic coloured pigments for the concrete products and outdoor hardscape market sectors. Cappelle is a privately owned company that traces its origins back 125 years. It sells organic and inorganic pigments to the paint, ink and plastics sectors, with customers in more than 75 countries. Cappelle has pigment plants in Belgium, France and China. Ferro signed a definitive agreement on 14 October to pay €50.5 M to acquire the entire assets and business of Cappelle on a cash-free, debt-free basis. Earlier this year, Cappelle had confirmed a number of distributorships for the North American market, namely: Strauch Chemical Distributors Inc (of Burr Ridge, IL) for the Upper Midwest; Azelis (formerly Unipex) for the Canadian market; EM Sullivan Inc for the US East Coast; and Dowd & Guild for the US West Coast.
Original Source: Paint & Coatings Industry (PCI), Aug 2016, 32 (8), 19 (Website: http:// www.pcimag.com) © BNP Media 2016. Original Source: Ferro Corp, 17 Oct 2016 (Suite 250, 6060 Parkland Boulevard, Mayfield Heights, OH 44124, USA, Website: http://www. ferro.com. © Ferro Corp 2016
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Geotech buys PEP, boosting market share in pearlescent pigments
Keystone Aniline buys CSS (of Manchester)
Effective 28 June 2016, Geotech International (headquartered in Haarlem, 25 km west of Amsterdam) acquired the entire assets and business of Paillettes & Pigments (PEP, headquartered in Valle d'Alessani, 65 km south of Bastia, Corsica, France). PEP is a supplier of pearlescent pigments, mainly focusing on the French cosmetics market. It also sells to paint and plastic masterbatch producers. Mr Harold Van Haren (the owner and Managing Director of Geotech) said: "PEP is well known as a reliable supplier of high quality special effect pigments to the French market and it is passionate about the same thing as we are – creating innovating colour solutions. Joining forces provide a better entrance for Geotech into the French market, as well as the possibility to gain a larger market share.'' For PEP's customers, the salient advantages will be an increased level of service and increased resources to ensure compliance with the requirements of European REACH product safety legislation.
Keystone Aniline Corp (headquartered in Chicago) has acquired Colour Synthesis Solutions Ltd (CSS, based in Manchester, England). CSS will be integrated into Keystone's European business, based in Huddersfield, but the manufacturing facilities will remain in Manchester. CSS specialises in custom synthesis of dyes and intermediates. It also makes and sells optical brighteners, ultra-violet absorbers, fluorescent dyes, dichroic dyes (for liquid crystal applications) and solar dyes. The company has been working on the development of organo-cobalt compounds as a potential substitute for ruthenium chemicals in photovoltaic cells and solar panels.
Original Source: Pitture & Vernici - European Coatings, Sep-Oct 2016, 92 (5), 99 (Website: http://www.pittureevernici.it) © CREI 2016
IFF expands in natural food colours via purchase of David Michael/ Daroma The ownership of Daroma, a global supplier of natural food colours and flavours, has changed hands again. International Flavors & Fragrances (IFF, of New York) recently purchased David Michael & Co (headquartered in Philadelphia, PA) and plans to effectively amalgamate this company with Ottens Flavors (also of Philadelphia), which IFF bought last year. David Michael had traditionally specialised in trading and processing vanilla pods, vanilla extracts and vanillin, then it globalised and diversified with the acquisition of Daroma SA in 2000. The acquisition of Daroma's colorant technology was a particular bonus. In 2005, Daroma (headquartered in Valence, 100 km south of Lyon) was renamed DM Europe. The DM group currently has a workforce of 250 and operates manufacturing facilities at Philadelphia, Valence, San Bernadino (California), Lerma (Mexico) and BeijingXincheng (China).
Original Source: Chimie Pharma Hebdo, 19 Sep 2016, (773), (Website: http://www. industrie.com/chimie) (in French) © ETAI 2016
Original Source: Ink World, 20 Sep 2016, (Website: http://www.inkworldmagazine.com) © Rodman Media 2016
Lanxess will buy Chemtura for €2.4 bn & consolidate its flame retardants business Lanxess, which was created in 2004 as a result of the Bayer demerger, recently announced plans for its largest acquisition to date – the acquisition of Chemtura (headquartered in Philadelphia, PA) for about €2.4 bn. The two companies signed a definitive agreement on 26 September, whereby Lanxess will pay $33.50 per share cash to all Chemtura shareholders. This represents an 18.9% premium on the closing price of $28.28 at the close of trading on 23 September. The total transaction value also includes net debt and pension liabilities. The deal should be completed in mid-2017. Chemtura is one of the world's largest suppliers of flame retardants and lubricant additives. It is particularly strong in bromine-based flame retardants, as well as elemental bromine and other bromine derivatives. The company also makes and sells urethanes and organo-metallics. It has 20 sites in 11 countries, employs about 2500 people worldwide and global sales revenues of $275 M. Chemtura's average profit margin (earnings before interest, tax, depreciation, amortisation and one-off exceptional items) was 16% over the past four quarters. North America normally accounts for about 45% of Chemtura's global sales revenue. After completion of the acquisition, Chemtura's flame retardants and
December 2016
Original Source: Americhem Inc, 19 Jul 2016 (2000 Americhem Way, Cuyahoga Falls, OH 44221, USA, Website: http://www.americhem. com) © Americhem 2016. Original Source: Injection World, Sep 2016, 8 (Website: http:// www.amiplastics.com/mags) © Applied Market Information Ltd 2016
Ownership of Chromaflo transferred from Arsenal & Nord Capital to American Securities American Securities LLC (a private equity firm, based in New York) has agreed to purchase the entire assets and business of Chromaflo Technologies Inc (based in Ashtabula, OH). The transaction should be completed by the end of November 2016. Chromaflo was created as the world's largest manufacturer of pigment dispersions by the merger of Plasticolors with Evonik's global colorants business under the aegis of Arsenal Capital Partners (another private equity firm, based in New York). Chromaflo then extended its business with the acquisition of the Tint-Ayd colorants business of Elementis. (See also 'Focus on Pigments', Jul 2012, 6 & Feb 2013, 5). Towards the end of 2013, Chromaflo absorbed the global tinting colorants business of CPS Color (headquartered in Vantaa, Finland), thus adding more than $100 M to its annual global sales revenue and about 250 people to its global workforce. (See 'Focus on Pigments', Feb 2014, 5).
December 2016
ON
PIGMENTS
Chromaflo now has manufacturing facilities in Australia, Canada, China, Finland, the Netherlands and the US. It has more than 200 different product lines, encompassing 7000 products. Prior to the American Securities takeover, Arsenal Capital Partners had a majority stake in Chromaflo, while Nordic Capital Fund VI had a significant minority shareholding.
Original Source: Ink World, 6 Oct 2016, (Website: http://www.inkworldmagazine.com) © Rodman Media 2016
HIG Capital acquires majority stake in Dominion Colour HIG Capital, a global private equity firm based in Miami, has acquired a majority stake in Dominion Colour Corp (DCC, headquartered in Toronto). DCC is a major producer of organic and inorganic pigments, with 300 employees and six plants in Canada, the UK and the Netherlands, all of which are certified to ISO-9001 and ISO14001 standards. Mr Mike Klein (President & CEO of Dominion Colour) said: "We are delighted to welcome a new partner that shares our passion for product development and we are excited to announce that our fellow shareholder and Executive Vice President, Dr Mark Vincent, will stay on and become the new CEO of the business. This investment facilitates the orderly ownership succession and retirement of DCC's senior shareholder group who will remain as minority shareholders of the business. Mr Keval Patel (Managing Director of HIG Capital) said: "With its focus on developing innovative technical colour solutions, DCC provides a unique value proposition to its long-standing customers worldwide for their use in high-performance coatings, plastics and inks. We look forward to providing capital and strategic insight to continue to drive excellence and achieve the company's growth potential." DCC was originally incorporated in 1946 as a division of Canadian Wallpaper Manufacturers Ltd (CWM), making pigment dispersions for colouring wallpaper. In 1952, DCC built an organic pigments plant on a site in New Toronto. Three years later, facilities were installed for the manufacture of chrome yellow, moly orange, zinc and strontium chromate. In 1968, CWM became part of the Reed International group. In 1970, DCC commissioned new facilities for chrome yellow and moly orange production on a new site at Ajax (50 km northeast of Toronto). In 1988, Reed International sold DCC to Daishowa Forest Products, which in turn
sold it on during 1989 to Kikuchi Color & Chemicals Corp (of Tokyo). In March 1995, Cookson Pigments and DCC signed an agreement, whereby Cookson ceased manufacturing inorganic pigments at Newark, NJ and satisfied its sales commitments to customers by reselling pigments manufactured by DCC. In 1997, DCC purchased Cookson Pigments' order book and rights associated with the Krolor silica-encapsulated pigments range. European rights to use the Krolor brandname were acquired from Heubach (the former owners of the Newark site) in 2002. Effectively, pigment production at Newark was transferred to DCC's expanded facilities in Canada. (See 'Focus on Pigments', Apr 1995, 4 & Mar 1997, 5 & Feb 2003, 5). Meanwhile, DCC had purchased from Colours Newton a small pigments plant at Bromont (90 km east of Montreal) and Cia Venezolana de Pigmentos. (See 'Focus on Pigments', Apr 1999, 5 & Aug 2000, 5). In 2005, DCC purchased Holliday Dispersions, with a plant at Rossendale (30 km north of Manchester in the UK). In 2009, DCC's prominence in the UK increased when it purchased customer lists, brandnames and product formulations from the insolvent European Colour group. The manufacture of the Eljon and DyeCom products was promptly transferred from European Colours' Stockport complex to DCC's sites in Canada. (See 'Focus on Pigments', Nov 2005, 5 & Nov 2009, 6). In 2012, BASF sold its Irgazin and Irgacolor bismuth vanadate business and its indanthrone blue business to Dominion Colour: the products were subsequently rebranded as DCC Yellow (PY-184) and DCC Blue (PB-60). (See 'Focus on Pigments', Mar 2012, 4). Meanwhile, effective 25 March 2008, via an agreed management buy-out, Kikuchi sold all its shares in DCC to the existing team of senior executives, comprising Mr Mike Klein, Dr Mark Vincent, Mr Jack Nelligan and Mr Bob Ralph.
Dominion Colour Corp, 3 Oct 2016 (199 New Toronto Street, Toronto, ON M8Y´V 3X4, Canada, Website: http://www.dominioncolour. com) © Dominion Colour 2016
Ferro buys Delta assets & Cappelle, expanding its addressable market for pigments to $4 bn Ferro Corp recently made two important acquisitions to expand its global colorants business, paying a total of $60 M for
5
FOCUS Cappelle Pigments (headquartered in Menen, Belgium) and certain assets belonging to Delta Performance Products (headquartered in Covington, GA). On a pro rata basis, the two acquisitions should add $76 M to Ferro's sales revenue and $11 M to adjusted earnings for the 2016 fiscal year. Mr Peter Thomas (Chairman, President & CEO of Ferro Corp) said: "These acquisitions are great additions to our growing Pigments business. Over the next 12-24 months, we expect to realise commercial and operating synergies from these acquisitions of $3-4 M. These acquisitions are much like the Nubiola acquisition we made last year. They both increase the breadth of options we can offer our customers, increase our technical capabilities and enhance our market position. The transactions will expand our addressable market for pigments by a factor of four, to approximately $4 bn. These businesses demonstrate the value proposition of our Pigments business. We create value for our customers by combining and manipulating pigments to produce specialised colour solutions that provide functional attributes for our customers' end products, or improve the effectiveness and efficiency of their supply chain and manufacturing processes." The purchase of certain assets of Delta Performance Products was completed on 1 August 2016. The relevant assets produce customised colorant blends, utilising Ferro's complex inorganic coloured pigments for the concrete products and outdoor hardscape market sectors. Cappelle is a privately owned company that traces its origins back 125 years. It sells organic and inorganic pigments to the paint, ink and plastics sectors, with customers in more than 75 countries. Cappelle has pigment plants in Belgium, France and China. Ferro signed a definitive agreement on 14 October to pay €50.5 M to acquire the entire assets and business of Cappelle on a cash-free, debt-free basis. Earlier this year, Cappelle had confirmed a number of distributorships for the North American market, namely: Strauch Chemical Distributors Inc (of Burr Ridge, IL) for the Upper Midwest; Azelis (formerly Unipex) for the Canadian market; EM Sullivan Inc for the US East Coast; and Dowd & Guild for the US West Coast.
Original Source: Paint & Coatings Industry (PCI), Aug 2016, 32 (8), 19 (Website: http:// www.pcimag.com) © BNP Media 2016. Original Source: Ferro Corp, 17 Oct 2016 (Suite 250, 6060 Parkland Boulevard, Mayfield Heights, OH 44124, USA, Website: http://www. ferro.com. © Ferro Corp 2016
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Geotech buys PEP, boosting market share in pearlescent pigments
Keystone Aniline buys CSS (of Manchester)
Effective 28 June 2016, Geotech International (headquartered in Haarlem, 25 km west of Amsterdam) acquired the entire assets and business of Paillettes & Pigments (PEP, headquartered in Valle d'Alessani, 65 km south of Bastia, Corsica, France). PEP is a supplier of pearlescent pigments, mainly focusing on the French cosmetics market. It also sells to paint and plastic masterbatch producers. Mr Harold Van Haren (the owner and Managing Director of Geotech) said: "PEP is well known as a reliable supplier of high quality special effect pigments to the French market and it is passionate about the same thing as we are – creating innovating colour solutions. Joining forces provide a better entrance for Geotech into the French market, as well as the possibility to gain a larger market share.'' For PEP's customers, the salient advantages will be an increased level of service and increased resources to ensure compliance with the requirements of European REACH product safety legislation.
Keystone Aniline Corp (headquartered in Chicago) has acquired Colour Synthesis Solutions Ltd (CSS, based in Manchester, England). CSS will be integrated into Keystone's European business, based in Huddersfield, but the manufacturing facilities will remain in Manchester. CSS specialises in custom synthesis of dyes and intermediates. It also makes and sells optical brighteners, ultra-violet absorbers, fluorescent dyes, dichroic dyes (for liquid crystal applications) and solar dyes. The company has been working on the development of organo-cobalt compounds as a potential substitute for ruthenium chemicals in photovoltaic cells and solar panels.
Original Source: Pitture & Vernici - European Coatings, Sep-Oct 2016, 92 (5), 99 (Website: http://www.pittureevernici.it) © CREI 2016
IFF expands in natural food colours via purchase of David Michael/ Daroma The ownership of Daroma, a global supplier of natural food colours and flavours, has changed hands again. International Flavors & Fragrances (IFF, of New York) recently purchased David Michael & Co (headquartered in Philadelphia, PA) and plans to effectively amalgamate this company with Ottens Flavors (also of Philadelphia), which IFF bought last year. David Michael had traditionally specialised in trading and processing vanilla pods, vanilla extracts and vanillin, then it globalised and diversified with the acquisition of Daroma SA in 2000. The acquisition of Daroma's colorant technology was a particular bonus. In 2005, Daroma (headquartered in Valence, 100 km south of Lyon) was renamed DM Europe. The DM group currently has a workforce of 250 and operates manufacturing facilities at Philadelphia, Valence, San Bernadino (California), Lerma (Mexico) and BeijingXincheng (China).
Original Source: Chimie Pharma Hebdo, 19 Sep 2016, (773), (Website: http://www. industrie.com/chimie) (in French) © ETAI 2016
Original Source: Ink World, 20 Sep 2016, (Website: http://www.inkworldmagazine.com) © Rodman Media 2016
Lanxess will buy Chemtura for €2.4 bn & consolidate its flame retardants business Lanxess, which was created in 2004 as a result of the Bayer demerger, recently announced plans for its largest acquisition to date – the acquisition of Chemtura (headquartered in Philadelphia, PA) for about €2.4 bn. The two companies signed a definitive agreement on 26 September, whereby Lanxess will pay $33.50 per share cash to all Chemtura shareholders. This represents an 18.9% premium on the closing price of $28.28 at the close of trading on 23 September. The total transaction value also includes net debt and pension liabilities. The deal should be completed in mid-2017. Chemtura is one of the world's largest suppliers of flame retardants and lubricant additives. It is particularly strong in bromine-based flame retardants, as well as elemental bromine and other bromine derivatives. The company also makes and sells urethanes and organo-metallics. It has 20 sites in 11 countries, employs about 2500 people worldwide and global sales revenues of $275 M. Chemtura's average profit margin (earnings before interest, tax, depreciation, amortisation and one-off exceptional items) was 16% over the past four quarters. North America normally accounts for about 45% of Chemtura's global sales revenue. After completion of the acquisition, Chemtura's flame retardants and
December 2016