Toronto-based Chemtrade Logistics Income Fund announced on Dec. 4 that it has entered into a definitive agreement to purchase General Chemical Holding Company, Parsippany, N.J., for $860 million, subject to certain adjustments.
General Chemical is a manufacturer of a broad portfolio of inorganic chemical products with three business units: Water Treatment Chemicals, Sulfuric Acid, and Specialty Chemicals. The company is one of North America’s largest suppliers of sulfuric acid, liquid sulfur dioxide, and sodium hydrosulfite, and is a major regional supplier of sulfur, sodium chlorate, phosphorus pentasulfide, zinc oxide, and water treatment chemicals. The business operates 45 facilities across the U.S. and Canada, and employs approximately 540 people.
The transaction will be structured as a merger in accordance with the laws of the State of Delaware, pursuant to which Chemtrade will acquire all of the outstanding shares of ASP GT Holding Corp., General Chemical’s parent company, from certain funds controlled by American Securities LLC, a private equity firm.
“This is a historic event for Chemtrade. The acquisition of General Chemical adds significant size, scale, and scope to Chemtrade’s existing product and service platform,” said Mark Davis, Chemtrade president and CEO. “General Chemical has strong portfolio alignment with our current business, enhancing our existing sulfuric acid geographic footprint and greatly expanding our water treatment business so it now extends across most of North America. The acquisition of General Chemical also moves Chemtrade into new but related product categories and end markets, and positions Chemtrade to capitalize on new growth opportunities.”
General Chemical’s customer based includes municipal water treatment, general industrial production, pulp and paper, food and beverage, agriculture, and pharmaceuticals. The company posted revenues of $390 million for the fiscal year ended Sept. 30, 2013, and adjusted EBITDA of $110 million.