M&As: Solvay sells PU/epoxy business in the US; Zotefoams buys Chinese partner in insulation jv

Brussels-headquartered Solvay has agreed to sell its Formulated Resins business to Altana AG’s Elantas PDG Inc. Under the agreement, Solvay’s global business unit Technology Solutions will divest the business line that generated sales of US$20 million in 2015. The divestment includes the Formulated Resins product portfolio, the manufacturing and R&D facility based in New York, US, and all associated technical, commercial and administrative staff.

“The divestment represents a strong strategic fit for both Solvay and Elantas,” commented Michael J. Radossich, President, Solvay Technology Solutions. “This transaction enables Technology Solutions to further extend our leadership position in our core polymer additives business.”

The Formulated Resins portfolio mainly entails the Conap brand epoxy resin and polyurethane product systems and serves electronics, electrical and specialty adhesives markets. Completion of the transaction is subject to customary closing conditions, including antitrust approvals, and is expected in the first half of 2017.

Solvay Technology Solutions is a global business unit of the Solvay Group and is comprised of Mining Solutions, Phosphorus Specialties and Additive Technologies business lines.

In other news, UK-headquartered foam maker Zotefoams has acquired full ownership of its joint venture, Kunshan Zotek King Lai (KZKL), from King Lai Group (King Lai).

Zotefoams originally entered into an agreement with Chinese firm King Lai in March 2015 to manufacture and sell the company's T-FIT closed-cell foam insulation products through the joint venture KZKL.

Under the terms of the original agreement, KZKL was owned 51% by Zotefoams and 49% by King Lai, with manufacturing to be located in King Lai's factory in Kunshan, China.

Manufacturing has now been established in a separate, purpose designed plant in Kunshan, Jiangsu Province, China and, following the grant of a business license to KZKL in December 2016, Zotefoams acquired full control of this business.

Zotefoams' T-FIT insulation products are for pipe and tube cleanroom insulation in the biotechnology, pharmaceutical and semiconductor industries and manufactured from Zotefoams’ elastomeric closed-cell foam, Zotek F42HTLS.