Chemical maker Arkema, Colombes, France, reported on July 2 that it completed its $570 million acquisition of ArrMaz Custom Chemicals Inc., Mulberry, Fla., from Golden Gate Capital, San Francisco (GM May 17, p. 26). Founded in 1967, ArrMaz, which Golden Gate purchased in 2013 (GM Jan. 14, 2013), is a specialty chemicals producer for the mining, fertilizer, phosphate, industrial ammonium nitrate, asphalt, and oil and gas industries. It serves customers globally from multiple locations across North and South America, Europe, Asia, Africa, and the Middle East.
ArrMaz’s annual sales are $290 million. The company generates margins of 18 percent, and integrating the business into Arkema’s Performance Additive segment should generate $15 million in savings by 2023, according to Arkema, which said ArrMaz is a profitable, resilient, and low-capital intensive business that is expected to have an accretive impact from the first year. It also said the acquisition continues to move it toward specialties, and noted that Arkema already sells some of its surfactant products to mining companies.
ArrMaz’s management team, led by CEO Dave Keselica, will continue to lead ArrMaz.
“We are very pleased to welcome the ArrMaz teams,” said Thierry Le Hénaff, Arkema Chairman and CEO. “Their recognized formulation expertise, excellent reputation with customers, and leadership positions in several niche markets are all assets that will contribute to accelerate the development of specialty surfactants within the group.”
Arkema reported annual sales of €8.8 billion in 2018, and employs some 20,000 people worldwide and operates in close to 55 countries.