MERGERS AND ACQUISITIONS SPECIALTY CHEMICALS
CR E D I T: C LA R I A N T ( H A N D S H A K E) ; S H EL L ( F LN G)
France’s Novacap acquires again In the latest in a string of acquisitions, the French fine and specialty chemical company Novacap has agreed to purchase Chemoxy International, a U.K.-based manufacturer of specialty chemicals and solvents. Chemoxy, with about 150 employees and 2016 sales of $54 million, operates plants in Middlesbrough and Billingham, England. The company specializes in low-toxicity solvents, solvent recovery, and personal care ingredients. Novacap, which employs more than 2,750 people and had sales last year of about $725 million, was formed in 2003 as an industrial chemical spin-off of Rhodia. In 2011, it started adding pharmaceutical chemical businesses with the acquisition of Rhodia Analgesics. In 2013, Novacap acquired a controlling stake in Taixing Yangzi Pharm Chemical, a Chinese maker of p-aminophenol, a raw material for the analgesic acetaminophen. Two years later, it acquired Chemie Uetikon, a German custom manufacturer of drug intermediates and active pharmaceutical ingredients. Earlier this year, Novacap agreed to acquire PCAS, a French custom synthesis and drug ingredients firm in a deal valued at $250 million. Chemoxy serves pharmaceutical markets in addition to specialty markets such as flavors and fragrances, food, surface coatings, and lubricants. Fine chemicals industry consultant Roger LaForce says the Chemoxy deal fits well into Novacap’s strategy of building a highly diversified chemical company. “Obviously, they want to grow by acquisitions,” he says, but success will hinge on the firm’s ability to consolidate and “carve out synergies” among nine distinct businesses that include botanicals for cosmetics, mineral specialties, pharmaceutical chemical manufacturing, and generic analgesics.—RICK MULLIN
Activist investors attack Clariant-Huntsman deal Proposed merger undervalues the Swiss firm and dilutes its specialties mission, critics say breakup would trigger a $200 million fee. Activist investors are teaming up in an ef“Clariant is the number one takeover fort to derail a $20 billion merger of equals, announced May 22, between Swiss specialty target in the sector, with a long list of interchemical company Clariant and U.S. chemi- ested parties,” points out Markus Mayer, an analyst at investment bank Baader Helvea, cal maker Huntsman Corp. in a note to investors. Indeed, Mayer views Corvex Management, a hedge fund, and the merger as a defense strategy by both 40 North, an investment firm, disclosed firms to ward off takeovers. that they bought shares to raise their comAn outright sale of bined stake in Clariant to Clariant is likely what 7.2% to push the company the investors are aiming to pursue alternatives to for, says Kevin McCarthy, the Huntsman deal. chemicals analyst at VerThe activists say that tical Research Partners, Huntsman’s basic cheman independent equities ical businesses aren’t an research firm. But Mcattractive match for ClarCarthy says the expected iant. In a statement quotsynergies of the merger, ed by Bloomberg, Corvex which could exceed and 40 North say the $400 million per year, all-stock merger underoffer substantial value to values Clariant and is a Investors target a merger the two firms. “complete reversal of the agreement struck by Clariant Clariant and Huntscompany’s long-standing CEO Hariolf Kottmann (left) man want to close the strategy to become a and Huntsman CEO Peter R. merger by the end of the pure-play specialty chem- Huntsman. year. Clariant says it is in icals company.” close dialogue with Corvex and 40 North Clariant produces catalysts, personal and won’t publicly comment on the activcare ingredients, oil and gas chemicals, and ists’ position. plastics and coatings. Huntsman makes McCarthy notes that two-thirds of Claradvanced materials, performance prodiant shareholders must vote to approve ucts, polyurethanes, and textile effects the deal, whereas Huntsman requires only chemicals. a majority vote. Meanwhile, Huntsman is Analysts say the investor dissent inworking to spin off its pigments and addicreases the chances that a strategic buyer tives business, to be called Venator Materiwill emerge to snap up Clariant and scutals, this summer.—MELODY BOMGARDNER tle the Huntsman agreement, though a
INFRASTRUCTURE Shell’s floating liquefied natural gas (FLNG) facility is on its way to the Prelude offshore gas field northwest of Australia. At 488 meters long, FLNG is the largest offshore floating facility ever built, Shell says. It will extract, liquefy, and ready for export 3.6 million metric tons of liquefied natural gas per year, along with smaller quantities of condensate and liquefied petroleum gas. JULY 10, 2017 | CEN.ACS.ORG | C&EN
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