FTSE 250 chemicals group Elementis has agreed to buy Brazilian coatings additives company Watercryl Quimica, providing a platform for its Specialty Products Division to expand in a fast growing market.
Watercryl, which generated sales of $9.3m and EBITDA (earnings before interest, tax, depreciation and amortisation) of $2.3m in the year to May 31st, is to be bought for a cash consideration of $24m.
The company was formed in 1993 and supplies additives to the Brazilian coatings industry, with manufacturing and technical facilities based in Palmital, So Paulo.
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Elementis hopes to combine the market positions, technical capabilities and product portfolios of Watercryl and Specialty Products in an attempt to expand sales of Watercryl products beyond Brazil and to accelerate the growth of Elementis products in Brazil.
"This acquisition represents significant progress in extending our reach into the fast growing and increasingly sophisticated Latin America coatings market. Watercryl has a strong presence in Brazil in terms of its product portfolio and manufacturing capabilities and has established an impressive reputation over the past 20 years for exceptional technical service, making it an excellent addition to our Specialty Products Division," said Chief Executive David Dutro.
"This acquisition is in perfect sync with our strategy, the opportunity to leverage an expanded, high value and innovative product portfolio to our Latin America customers provides an enviable platform for growth."
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