Perstorp, Sweden -- Speciality chemicals group Perstorp announced 5 Jan that it is to acquire the pentaerythritol (Penta) business of Ashland Inc. Perstorp said the acquisition is "part of a larger, ambitious investment campaign to increase polyol capacity".
Its Perstorp Polyols Inc. subsidiary has signed an agreement with Hercules Inc., a subsidiary of speciality chemicals company Ashland, to acquire its Penta business, related technology and certain assets. The deal does not include the Hercules manufacturing plant in Louisiana, Missouri, any real estate or employees.
According to Perstorp's statement, the transaction is fully in line with its strategy to increase polyol capacity.
"The Penta business is a core area within Perstorp and these products have been key in the development of Perstorp as an international company. The US market in particular has historically been a focus for us for this business", said Perstorp president and ceo Martin Lund, in in the statement.
"Perstorp plans to supply all needs out of the plants we are running at present and we will have sufficient capacity to supply both our current, and new customers," commented Ulrika Andersson, Business Unit Manger Penta & Formates, in the announcement.
This means the additional volumes, equipment and know-how from the acquisition, can be used "to increase capacity to meet the customers' long-term needs," she added.
The deal is subject to certain conditions and is expected to be completed within 60 days.
The polyalcohol Penta is used in applications such as alkyd resins, stabilisers for polyvinyl chloride, synthetic lubricants, varnishes, and other products.
Perstorp is now producing Penta in three plants -- in Germany, the US and Sweden. Investments will mainly take place in Perstorp's US facility, the company noted.