Crompton Corporation has announced that it has signed a definitive agreement to sell its Refined Products business to Sun Capital Partners Group Inc. for $80 million, subject to adjustment. The transaction is subject to regulatory and other approvals and the negotiation of certain ongoing supply arrangements. It is expected to close within 60 days.
"This sale is part of our plan to divest non-core assets and businesses and focus our resources on the businesses that will produce the greatest results for us and provide the best fit with our business strategy," said Crompton Chairman and CEO Robert L. Wood.
Refined Products had 2004 revenues of approximately $265 million. Included in the sale are facilities in Petrolia, Pennsylvania, and Amsterdam, Koog aan de Zaan and Haarlem, the Netherlands. The business employs approximately 470 people, who will remain with the Refined Products business. Refined Products will operate as a stand-alone business owned by Sun Capital Partners Group Inc., with a minority investment by Dale LeFebvre and GRP Capital LLC. GRP Capital advised Sun Capital on the transaction and also invested in Refined Products with Sun Capital.
Michael Fieldstone, vice president of Sun Capital Partners Inc., said, "Refined Products is a global leader in its market niche, with a reputation for manufacturing high-quality products to its broad and diversified customer base. We look forward to working with the experienced management team and dedicated employees to fully leverage these strong attributes and to position the company for long-term success."
Refined Products is the world's largest dedicated supplier of white oils, petrolatums, microcrystalline waxes and other refined hydrocarbons. The products are used for personal care items, such as creams and lotions, cosmetics and pharmaceutical ointments, as well as for food processing, agricultural dust suppression, polymer processing, telecommunications wire and cable, and air-conditioning and refrigeration lubricants.