Nouryon is continuing its growth acceleration plans with an agreement to acquire the carboxymethyl cellulose (CMC) business of J.M. Huber Corporation.
The transaction will significantly broaden Nouryon’s portfolio of products in CMC, a sustainable, bio-based water-soluble polymer used as a thickener, binder, stabiliser and film former.
The companies have largely complementary positions in CMC end markets, which include home and personal care, mining, food, pharmaceuticals, and paper and packaging.
The acquisition underlines Nouryon’s strategy of investing in attractive growth markets, including bolt-on acquisitions.
The business manufactures a complete line of CMC grades and serves customers in more than 80 countries, generating sales of around €135M.
It includes a world-class manufacturing facility, as well as an advanced R&D facility located at Äänekoski, Finland.
Around 240 employees from the business will transfer to Nouryon.
“We are excited by the opportunity to acquire this high-quality business,” said Charlie Shaver, Chairman and CEO of Nouryon.
“With an expansive range of products that complements our existing CMC portfolio, this business will allow us to offer our current and future customers a significantly broader set of solutions.
"This acquisition also confirms our commitment to investing in sustainable growth platforms.
"We look forward to welcoming the employees of this business into the Nouryon family,” he said.
“We’d like to thank our employees in the CMC business for their many years of service to J.M. Huber Corporation and for their strong dedication to the Huber Principles, especially our values of safety, environmental sustainability and operational excellence,” said Mike Marberry, CEO & President of J.M. Huber Corporation.
“We are very pleased that Nouryon, which shares our core values, will become the new strategic owner of this business and continue to provide excellent products and services to our long-standing CMC customers.”
Moelis & Company LLC acted as exclusive financial advisor to Nouryon and Latham & Watkins LLP acted as legal advisor.
J.M. Huber Corporation was advised by Citi as exclusive financial advisor and DLA Piper as legal advisor.
The transaction is expected to close in Q2 of 2020, subject to regulatory approvals.