Elementis, the FTSE 250 speciality chemicals group, has agreed, through its wholly owned subsidiary Elementis Specialties, to acquire the assets of Hi-Mar Specialty Chemicals, a US coatings additives company.
The $33m purchase has been made to further expand the company's product and technical service offering in these high value segments.
Group Chief Executive, David Dutro, said: "The acquisition of Hi-Mar Specialty Chemicals broadens our capabilities in value added, higher margin defoamer markets. Our two businesses share a common commitment to serving customers with innovative solutions and technologies, and Hi-Mar's complementary product portfolio, customer service culture and the opportunity to leverage newly acquired technologies globally make it an excellent addition to our Specialty Products business.
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"This is an exciting time for Elementis and, due to the cash generative nature of our company, we are able to comfortably finance both organic growth and these bolt-on acquisitions. Consequently, this transaction will not affect the special dividend to be announced with the preliminary results on February 26th 2013."
For the 12 months ended December 31st 2012, the acquired business reported, on an unaudited basis, sales of $14.5m and earnings before interest, tax, depreciation and amortisation of $3.5m.
The transaction is expected to be earnings-enhancing in the current year.
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