Kemira, a global leader in pulp and paper chemicals, is further increasing its presence in North America through the acquisition of the pulp and paper chemicals business from Vulcan Materials Company. The sales value of the business is USD 80 million and the price of the deal is USD 44 million. The acquisition will be done through Kemira's wholly owned subsidiary Kemira Chemicals, Inc. The number of Kemira personnel will increase by approximately 200 people.
Included in the transaction are plants in Columbus, Georgia; Shreveport, Louisiana and in Canada, Vancouver, British Columbia. The R&D Center in Columbus, GA is also part of the transaction. The product lines manufactured at these plants include emulsion polymers, defoamers, wet and dry strength resins and a variety of custom manufactured products.
Juhani Lindholm, Executive Vice President for the Pulp and Paper Chemicals of Kemira, sees this acquisition as a significant step in growing Kemira's pulp and paper chemicals business and significantly enhances Kemira's ability to serve the pulp and paper industry globally. "Customers will have greater flexibility in sourcing chemicals and technology for process and functional chemicals applications. The combination of this acquired business with our present North American business strengthens our resources on the North American market and brings new technologies for our customers globally." "This acquisition is consistent with Kemira's strategic intention to focus on pulp and paper," he explains.
"This acquisition should be excellent news for our customers and employees," says Seth Spurlock, the president and CEO of Kemira Chemicals, Inc. "It builds upon our core paper, mineral slurries and water treatment businesses by enhancing our production capabilities, adding new technology and expanding our R&D efforts. This enables us to expand and improve upon the value we offer our customers in all the North American markets we serve. Customers want to work with the basic producers who have the ability to better control the cost, quality and development of new chemistries. Employees benefit through enhanced personal opportunities by participating in an organization that is committed to growth globally."
Kemira seeks growth in chemicals for the pulp and paper industry, water treatment chemicals, and paints and coatings. It has operation in over 30 countries worldwide. In addition to organic growth, the Group will seek expansion in these areas through acquisitions. Industrial chemicals and plant nutrients are further areas of focus. Net sales of the company are approximately EUR 2.6 billion and the company employs 10,300 people.
Kemira's Pulp & Paper Chemicals business is offering its customers higher production efficiency and better product properties based on environmentally sound solutions. Kemira's focus is on retention, sizing, deposit control, water treatment and bleaching applications in order to optimize bleaching and papermaking operations as complete solutions.
Vulcan Materials Company, an S&P 500 company, is a producer of industrial materials with significant positions in two industries. It is the nation's foremost producer of construction aggregates, a major producer of other construction materials, and a leading chemicals manufacturer, supplying chloralkali and other industrial chemicals.
Further information:
Mr. Juhani Lindholm, Executive Vice President
Kemira Pulp & Paper Chemicals
tel. +358 (0)10 862 1606, gsm +358 (0)50 553 4931
Mr. Seth Spurlock, President
Mr. Bob Keller, Senior Vice President
Kemira Chemicals Inc.
tel. +1-770-436 1542
> Background information (.ppt)