Emerald Performance Materials, LLC (Emerald), a leading provider of advanced specialty chemicals, today announced that it has acquired the business and assets of DSM Special Products, BV (DSP), a European-based manufacturer of benzoic acid, sodium benzoate, benzaldehyde and benzyl alcohol.
As part of the acquisition agreement, DSP will become a part of the Emerald Kalama Chemical business unit, which manufactures and markets products and technologies targeted to food and beverage, consumer and industrial applications. Emerald is an affiliated portfolio company of Sun Capital Partners, Inc., a leading private investment firm specializing in leveraged buyouts and investments in market-leading companies. Terms of the transaction were not disclosed.
DSP is best known for its toluene oxidation technology, which is used to create Purox® brands of sodium benzoate and benzoic acid, as well as benzyl alcohol and benzaldehyde. These materials function as high-purity preservatives, antimicrobials, flavor and fragrance ingredients for food and beverages, cosmetic and household products, coatings, agrochemical, pharmaceutical and feed applications. VevoVitall®, a product for the animal health market, will continue to be sold through DSM Nutritional Products.
DSM in September 2007 announced its strategy to focus on its Life Sciences and Material Sciences businesses and its plan to divest the Special Products business. DSP employs approximately 130 people in The Netherlands at its manufacturing site in Rotterdam and its commercial office in Geleen. All will become employees of Emerald, per terms of the sales agreement.
"The acquisition of DSP is yet another strong sign of Emerald Kalama Chemical's commitment to operate as a world-class organization focused on toluene oxidation chemistry in support of our customers worldwide," said Edward T. Gotch, president of Emerald Kalama Chemical. "The DSP acquisition provides Emerald with a significant manufacturing presence in Europe and a great base from which to serve Emerald's existing business in Europe, as well as support our growth in that region. We are very enthusiastic about this acquisition, as we feel that DSP's technologies, expertise and reputation in the market closely parallel those of Emerald Kalama Chemical and our company as a whole."
Christopher H. Thomas, Principal, Sun Capital Partners, Inc., commented, "The acquisition of DSP will expand Emerald's presence into Europe and within the specialty chemical industry, reflecting our commitment to the industry and to Emerald's growth. This is Emerald's third strategic acquisition, and we will continue to actively pursue acquisitions in this space."