Ludwigshafen, Germany - BASF and ITWC Inc. have announced BASF's acquisition of the ITWC Inc. polyurethane systems business based in Malcom, Iowa.
ITWC specialises in cast elastomer polyurethane systems and polyester polyols.
BASF did not reveal financial details of the transaction.
ITWC has more than 80 employees in manufacturing, management, R&D, sales, and administration. The business operates sites in Malcom, Iowa and Riverside, California.
BASF is acquiring all the assets of ITWC, including those obtained during ITWC's acquisition of Hydroseal Polymers Inc., Riverside, California, in November 2010.
"With this acquisition, BASF further solidifies its position as a leading solutions provider for polyurethane systems and enhances its global market position with cast elastomer technology for a wide range of industries," said Raimar Jahn, President of BASF's Polyurethanes division, in BASF's statement.
Jahn added that ITWC's portfolio is strong in cast elastomers and products, while it also has "an excellent customer base and manufacturing capabilities.
"We look forward to combining our polyurethanes research and applications expertise with ITWC to expand our global reach in the cast elastomers market," Jahn said.
"Within North America, the new portfolio complements BASF's offering of polyurethane chemicals, systems, and specialties, and bolsters our footprint in the regional polyurethanes market," added Beate Ehle, president of Market and Business Development for BASF in North America.
Walt Smith, founder and ceo of ITWC, said: "ITWC's track record of continuing growth and development will be enhanced by the financial strength and resources of BASF. ITWC has experienced tremendous growth in sales over the past 23 years. We're confident there will be even more growth in the future. And the timing is right, consistent with plans already in place at both of our companies."
Cast elastomers are used in a wide range of applications across many markets and are known for their toughness and abrasion resistance. Typical applications include industrial tires and rollers, recreational wheels, transportation gears and pulleys, processing equipment for construction, sieves and scrapers, sealants and adhesives.
PIC: Walt Smith, ITWC founder and ceo: confident about growth.