Bio–Polyamides Arkema Plans to Buy Chinese Bio–Polyamides Business
Arkema plans to boost its performance products portfolio by acquiring the companies Hipro Polymers, a bio–polyamide manufacturer, and Casda Biomaterials, world leader in sebacic acid.
Jiangsu/China, Colombes/France – Arkema is currently on shopping spree in China: only recently the French petrochemical company announced plans to acquire to Chinese bio–material companies: Hipro Polymers, a fast-expanding producer of bio–polyamides, and Casda Biomaterials, the world leader in sebacic acid derived from castor oil and used in particular to manufacture this polyamide.
“This acquisition is a great opportunity in many respects. It will help us boost our position in China, one of Arkema’s geographic priorities for the last 5 years. With polyamide 10.10, it aptly complements our high added value polyamide 11 and 12 product range, and fits in well with our growth strategy in green chemistry,“ stated Thierry Le Hénaff, Arkema Chairman and Chief Executive Office.
Acquisition Strengthens Arkema's Bio–Polyamides Business
Together, Hipro Polymers and Casda Biomaterials employ around 750 people on two sites in China, generating sales of US $ 230 for 2011 (estimated). The purchase price is based on an an enterprise value of US $ 365 million for 100% of the capital of both companies, Arkema says. Currently both businesses are owned by a joint venture of Bain Capital, a global alternative asset manager, and the Chinese specialty chemical company Feixiang Chemicals.
“We are happy to see the two companies to join the family of Arkema, global leader of renewable source based high performance polyamide, and believe that the business and product development of the two companies will be brought to a new high level,“ added Ji Li, President of Feixiang Chemicals.
The acquisition would strengthen Arkema's attempts to become a major producer of bio–polyamides. The company is confident that its reputation and application know-how in the end-markets of these various products should help speed up the development of Hipro Polymers, in particular in transportation (automotive, trucks), renewable energies, and electronics.