M&As: Nexeo Plastics acquires Nevicolor; Rossari Biotech acquires Unitop Chemicals for US$55 mn

US-based resin distributor and an affiliate of GPD Companies Nexeo Plastics has acquired Nevicolor S.p.A, an Italian distributor and compounder of thermoplastics. Terms of the transaction were not disclosed.

A family-founded business based in Luzzara, Italy, with broad geographic reach throughout the country, Nevicolor has provided thermoplastic resins, compounds and application development services for over 57 years. The company’s products serve a variety of customers and suppliers in the industrial components, healthcare, automotive, advanced packaging, agriculture and electrical sectors. Nevicolor serves more than 800 customers with a portfolio of over 3,000 grades of high-quality polymers, including recycled materials.

"This strategic acquisition increases GPD’s scale and affords Nexeo Plastics access to Nevicolor’s highly technical and analytical specialization,” said Paul Tayler, Chief Executive Officer of GPD. “Nevicolor has built a reliable network of international suppliers, and we look forward to continuing to serve its customers with the customized solutions they have come to expect."

"We are pleased to join Nexeo Plastics, which will enhance and streamline our operations in Europe,” said Alessandro Negri, Business Director of Nevicolor.

"Our customers in Europe will now have access to a robust offering of tailor-made compounds, specialty polymers, lab services and recycled material,” added Joost d’Hooghe, Vice President of EMEA at Nexeo Plastics.

In other news, Indian speciality chemicals manufacturer Rossari Biotech has acquired Mumbai-based Unitop Chemicals, a supplier of surfactants, emulsifiers, and specialty chemicals, for around US$55 million. Rossari will be acquiring 100% of the equity capital of Unitop Chemicals, the company said in a statement.

The company further stated that 65% of the equity share capital will be acquired upon closure of the transaction, and the balance 35% over the next two years.

The funds for this acquisition will be through cash on the balance sheet.

Rossari says this acquisition will help expand its product portfolio, presence in adjoining areas of specialty chemical segments, pooling together of related technologies, larger international exposure, better domestic market reach, well-experienced and competent talent pool, and increased end-user industry applications.

Unitop Chemicals has three manufacturing sites in India with a total capacity of 86,000 tonnes/year and its key facility in Dahej, Gujarat, is in close proximity to Rossari's existing facility.

“We are delighted to accelerate the growth momentum at Rossari. Unitop Chemicals is a natural fit with our operations and brings with it immense synergies and complementary growth dimensions. The acquisition and investment of capital to enable this initiative to meet the parameters of operational and financial discipline outlined by our board," Rossari Biotech Executive Chairman Edward Menezes and Managing Director Sunil Chari said in a joint statement.

(PRA)

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