Chase Corporation (NYSE American: CCF), a Westwood, MA-based global manufacturer of protective materials for high-reliability applications across diverse market sectors, entered into a definitive agreement to acquire NuCera Solutions, from SK Capital, a private equity firm headquartered in New York.
Led by Steven McKeown, Chief Executive Officer, NuCera is a Houston, Texas-based leader in the development and manufacture of highly differentiated specialty polymers for markets that require high quality and performance: Adhesives, Coatings, Imaging, Masterbatches, Personal Care, Plastics and other consumer applications. The company supplies performance chemistry to global markets from its highly flexible manufacturing facilities in Barnsdall, OK which are supported by R&D and applications laboratories as well as pilot plant facilities. NuCera is headquartered in Houston, Texas with its primary production facility based in Barnsdall, Oklahoma and additional international sales offices in France and Singapore. The company employs approximately 130 people globally.
NuCera will be acquired for a purchase price of $250 million, pending any working capital adjustments and excluding acquisition-related costs. The purchase will be funded by utilizing Chase’s existing revolving credit facility and available cash on hand. The transaction is expected to close by the end of the third calendar quarter of 2022, subject to customary closing conditions and regulatory approvals. Chase expects this acquisition to be accretive to earnings within the first year of ownership. Chase will be modestly levered (~1.2x pro-forma net leverage) post acquisition and maintains ongoing financial flexibility.
The acquisition will enable Chase to expand Chase’s global reach into new blue-chip customers and attractive high-growth end markets such as personal care, polymer additives, coatings, diversified consumer products and masterbatches. In addition, the company expects to have meaningful long-term synergy opportunities. Chase will continue to market under NuCera brands and the business will be integrated into Chase’s Adhesives, Sealants and Additives reporting unit.
Founded in 1946 and led by Adam P. Chase, President and Chief Executive Officer, Chase Corporation is a global specialty chemicals company and a manufacturer of protective materials for high-reliability applications throughout the world.
FinSMEs
19/07/2022