Middlebury, Connecticut - Chemtura Corp. has acquired Croda International plc's stake in UK-based polyurethane specialist Baxenden Chemicals Ltd for £13 million ($26 million) in cash. The deal means that Chemtura has raised its stake in Baxenden to 100 percent, having previously held 53.5 percent.
Baxenden's sales for 2007 were about $70 million and the company has 212 employees at manufacturing facilities in Accrington and Droitwich, UK.
"Full ownership of Baxenden will permit better utilisation of the complementary technology and manufacturing experience of our businesses and will result in offering our customers a broader portfolio of products, technology and service," said Robert Wedinger, chief business officer for Chemtura and group president of Chemtura Performance Specialties, which includes the urethanes business.
At its two sites, Baxenden manufactures speciality polyurethane prepolymers, blocked isocyanates, polyurethane dispersions, hydrophilic polyurethanes, polyesters and polyvinylacetate copolymers. These are used in adhesives, coatings, elastomers, foam, sealants and as insulating materials.
Baxenden also offers equipment, particularly for applying foam and elastomer systems.
In a 3 March company statement, Wedinger revealed that Chemtura had, "evaluated selling this joint venture," but decided that "full ownership would create much more value through the integration of Baxenden's and Chemtura's broad capabilities."
Baxenden technology dovetails with Chemtura's existing high-performing urethanes business, the Chemtura executive continued.
"We see exciting growth potential for their polyurethane dispersion (PUD) products, specialist polyurethane prepolymers, and blocked isocyanate products and expect Baxenden to benefit from the global growth opportunities which now will be available as part of Chemtura," Wedinger added.