Half a dozen years after announcing intent to sell a long time manufacturing division in South Haven, Albemarle Corporation has found a buyer.
The Charlotte, North Carolina-based firm, which specializes in the global manufacture and trade of specialty chemicals, announced late last week that they had signed a definitive agreement to sell their Fine Chemistry Services business to W.R. Grace & Co. for approximately $570 million. The deal, as announced, would be made up of $300 million in cash, and the issuance to Albemarle of preferred equity of a W.R. Grace & Co. subsidiary having an aggregate stated value of $270 million. As part of the transaction, Grace will acquire Albemarle’s operations in both Tyrone, Pennsylvania, and and South Haven, Mich.
Albemarle’s CEO Kent Masters says, “This transaction reflects our ongoing commitment to actively and continuously refine our portfolio as we focus Albemarle on its core, growth-oriented business segments. Fine Chemistry Services is a profitable business, and we have confidence that Grace is positioned to help it thrive. I want to thank the strong operating team for their excellent performance and professionalism throughout the process.”
The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the second quarter of 2021.
The South Haven facility produces custom and generic products, and the sale of the Fine Chemistry Services Division is designed to narrow the focus on core business elements utilizing bromine, lithium and other chemicals. Company officials say that the roughly 175 employees should remain steady through the transition to Grace.
BofA Securities is acting as exclusive financial advisor to Albemarle and Troutman Pepper Hamilton Sanders LLP is acting as legal advisor in connection with this transaction.
This is not the first time that Grace has dealt with Albemarle. Three years ago they acquired Albemarle’s Polyolefin Catalyst division. That acquisition included production plants in Baton Rouge, LA and Yeosu, South Korea; R&D and pilot plant capabilities; and an extensive portfolio of intellectual property. Grace is based in Columbia, Maryland.
Albemarle Corporation, headquartered in Charlotte, N.C., is a global specialty chemicals company with leading positions in lithium, bromine and refining catalysts. The company thinks beyond business-as-usual to power the potential of companies in many of the world’s largest and most critical industries, such as energy, electronics, and transportation.
