CABB catches SF-Chem in chlorine combo
SF-Chem in a deal set to create a leading European supplier of
chlorine and speciality intermediates.
CABB has acquired 100 per cent of the Swiss company for an undisclosed sum, with the agreement expected to be completed by the end of next month.
Both companies specialise in the manufacture and marketing of chlorine and sulphur compounds, with CABB's expertise in monochloroacetic acid (MCAA), trichloroacetic acid (TCAA) and glycolic acid, among others, and SF-Chem bringing experience in chlorination, sulfonation, methylation and acid chlorides, as well offering custom manufacturing of speciality products.
The new company will serve the pharmaceutical, agrochemical and speciality chemical industries, operating out of its three European production sites in Pratteln, Switzerland, and Knapsack and Gersthofen in Germany.
Around 10 per cent of the combined company's business will come from the pharmaceutical industry, CABB CEO Ruud de Boer told in-PharmaTechnologist.com, comprised of "all the big names" in the industry, both in Europe and the US.
Custom manufacturing has proved a particularly successful business for SF-Chem and is a steadily growing activity within the company according to de Boer, with "most of the new projects...driven by the excellent contacts with international pharmaceutical companies."
Combined annual sales of the two firms total over €260m (over half coming from speciality intermediates), with around €150m generated by CABB and the remainder by SF-Chem.
CABB was put up for sale itself last year, and SF-Chem had initially expressed an interest in buying the company.
Eventually, CABB was bought by private equity firm Axa in January 2007, who then turned back to SF-Chem and majority shareholder Capvis with propositions relating to a potential acquisition of the company.
The plan is for the two companies to become fully integrated, a process that is expected to take six to twelve months, joining forces in R&D and some sales activities, though de Boer said there is likely to be some " rationalisation " in certain areas.
The current management team at SF-Chem will remain in place following the combination of the two companies, and will also retain a shareholding stake in the company.
According to the firms, the link-up will allow both companies access to a "fine mesh distribution network" in Europe, North America and Asia, as well each other's specialised production technologies.
SF-Chem brings new chemistry and additional products to CABB's portfolio, broadening the company's speciality intermediates offering.
CABB already has a strong presence in Europe, North America and South America, and the new enlarged business will now target further potential partnering opportunities in the Americas and Asia.
According to de Boer, both companies have already identified potential projects which will hopefully come to fruition early next year.
