M&As: Celanese to acquire Nouryon’s redispersible powders business; Milliken finalises acquisition of Borchers

US chemical firm Celanese Corporation is to acquire compatriot Nouryon’s redispersible polymer powders business offered under the Elotex brand (Elotex business). As part of the acquisition, Celanese says it will acquire all of Nouryon’s global production facilities for redispersible polymer powders across Europe and Asia, all products under the Elotex portfolio, as well as all customer agreements, technology and commercial facilities globally. Terms were not disclosed.

Elotex is one of the world’s leading manufacturers of redispersible polymer powders for the following product applications:

Celanese expects to integrate Elotex’s redispersible polymer powder product portfolio and production facilities into its global acetyl chain to further meet global product demand. Elotex has production facilities in Europe and China that include Frankfurt, Germany; Geleen, Netherlands; Moosleerau, Switzerland; and Shanghai, China. Elotex’s manufacturing facilities in Frankfurt and Geleen are co-located and operationally integrated with Celanese emulsions assets at these locations. Elotex has its global headquarters, R&D and Technical Services functions located in Sempach, Switzerland.

The parties expect to complete the transaction in the second quarter of 2020, subject to customary closing conditions, regulatory approvals and subject to completion of the works council process. Until closing, Celanese and Elotex will continue to operate as independent businesses

In other news, US materials firm Milliken & Company has formally acquired Borchers Group, a global speciality chemicals company known for its coating additives and speciality catalyst solutions, from The Jordan Company. 

Headquartered in Westlake, Ohio, Borchers carries a respected portfolio of additives for the coatings, inks and adhesives markets with a comprehensive range of cobalt-free driers, dispersants, rheology modifiers, wetting agents, polymerisation catalysts and adhesion promoters. 

“When great teams come together, big things happen,” stated Halsey Cook, Milliken President/CEO on closing the deal. “I’m excited to combine Borchers’ capabilities with Milliken’s long-term view and focus on innovation and sustainability.”

“Borchers brings expertise, products and customer knowledge in the paint and coatings industry,” commented Russ Rudolph, senior vice president, Milliken’s Coating Additives Business. “Combined with Milliken’s commitment to investment in long-term sustainable innovation and specialty chemicals global reach, this acquisition will accelerate solutions for the markets and customers we serve.” 

As Borchers integrates into Milliken, daily operations will continue without interruption, including relationships with existing suppliers and customers.  

Jones Day represented Milliken in the transaction. Moelis & Company LLC acted as financial advisor, and Mayer Brown LLP acted as legal advisor to Borchers and TJC.

(PRA)

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