Nouryon continues its growth acceleration plans with an agreement to acquire the carboxymethyl cellulose (CMC) business of J.M. Huber Corporation.
Nouryon grows with carboxymethyl cellulose acquisition
Äänekoski facility, Finland
The transaction will broaden Nouryon’s portfolio of products in CMC, a sustainable, bio-based water-soluble polymer used as a thickener, binder, stabiliser and film former.
The companies have largely complementary positions in CMC end markets, which include home and personal care, mining, food, pharmaceuticals, and paper and packaging.
The acquisition underlines Nouryon’s strategy of investing in attractive growth markets, including bolt-on acquisitions. The business manufactures a complete line of CMC grades and serves customers in over 80 countries, generating sales of around €135m. It includes a world-class manufacturing facility as well as an advanced R&D facility located at Äänekoski, Finland.
Nouryon CEO Charlie Shaver said: “We are excited by the opportunity to acquire this high-quality business. With an expansive range of products that complements our existing CMC portfolio, this business will allow us to offer our current and future customers a significantly broader set of solutions. This acquisition also confirms our commitment to investing in sustainable growth platforms.”
Huber CEO Mike Marberry added: “We’d like to thank our employees in the CMC business for their many years of service … and for their strong dedication to the Huber Principles, especially our values of safety, environmental sustainability, and operational excellence. We are very pleased that Nouryon, which shares our core values, will become the new strategic owner of this business and continue to provide excellent products and services.”
Moelis & Company LLC acted as exclusive financial advisor to Nouryon and Latham & Watkins LLP acted as legal advisor. J.M. Huber Corporation was advised by Citi as exclusive financial advisor and DLA Piper as legal advisor.
The transaction is expected to close in the second quarter of 2020, subject to regulatory approvals.
