Vantage Specialty Chemicals sale nears completion

(ICIS) -- US-based oleochemicals producer Vantage Specialty Chemicals is close to being sold, with a private equity firm the likely buyer, several sources in the financial community said on Wednesday. The sale of Vantage is in the final stage with a buyer already selected and an announcement likely to come within the next month, said one source.

The company, owned by US-based private equity firm HIG Capital, generates about USD50m-60m (EUR38m-45m) in annual earnings before interest, tax, depreciation and amortisation (EBITDA), according to a number of sources. The sale multiple is said to be relatively high at over eight times EBITDA, making for a final price of between USD400m-480m or higher.

Vantage is being sold through a formal auction process that started several months ago, according to sources.
⌠It was a food fight among private equity firms - many were actively pursuing this asset, said another source.
⌠Several private equity firms were after this asset - it was hotly contested, another source said.

The buyer is likely US-based private equity firm The Jordan Company (TJC), said one source.
TJC is no stranger to the chemical space. It owns US-based Haas Group International, a provider of chemical management services. TJC would not comment on the information.

MRC

(ICIS) -- The Middle East spot prices of black compounded high density polyethylene (HDPE) pipe have fallen by about USD30-50/tonne (EUR 23-38/tonne) this month for December shipments from November settlements because of ample supply amid flat demand, producers and converters said on Thursday.

The fixtures for December cargoes were done at USD1,490/tonne DEL (delivered) GCC (Gulf Cooperation Council), which is equivalent to USD1,470-1,490/tonne CFR GCC, industry players said. This is down by USD30-50/tonne or 2.6% from November levels, the players added.
The prices of black pipe grade HDPE started to decline steadily during the fourth quarter of this year, along with the stable-to-soft prices in the leading Asia markets. This decline occurred after a Saudi producer was certified for its black compounded pipe grade HDPE in August.

⌠With a new player in the market, competition has increased, a Dubai-based converter said.
⌠The end of the financial accounting year is just around the corner and given the reduced intention to build up inventories with the converters, producers are trying to push out more [cargoes] to keep their stock levels low, a southeast Asian polyethylene (PE) producer said.

The offers of southeast Asian material for shipment in December were heard at USD1,520/tonne CFR GCC, which did not attract the buyers whose bids were at USD1,490/tonne CFR GCC and below.

MRC

(BASF) -- On December 8, 2011, the Cluster of Excellence ⌠Unifying Concepts in Catalysis (UniCat) and the chemical company BASF SE signed a cooperation agreement establishing a new joint lab dedicated to the development of new catalytic processes for raw material change. The move promotes the search for alternatives to petroleum, in particular the use of natural gas. The long term goal is to ensure the continued future availability of raw materials for the production of chemicals.

BASF SE and Technische Universitat Berlin are putting substantial resources into setting up the UniCat-BASF Joint Lab. BASF plans to invest up to EUR6.4 million during the first five years. The total volume amounts to about EUR13 million. Twelve postdocs and postgrads will do research in the 900 square meter lab. Installation of equipment for catalyst synthesis, characterization and testing starts in January 2012.

Unifying Concepts in Catalysis (UniCat) is the Cluster of Excellence within the framework of the German Initiative for Excellence researching the economically important field of catalysis. More than 250 chemists, physicists, biologists and engineers from four universities and two Max Planck research institutes from Berlin and Potsdam are involved in this interdisciplinary research network. The Cluster is hosted by the Technische Universitat Berlin. The subject areas covered range from the chemical conversion of natural and biogas, the activation of carbon dioxide and the creation of hydrogen from light and water, to the synthesis of active ingredients using enzymes.

MRC

(Lanxess) -- The placement of floor screed has begun at the new corporate headquarters of specialty chemicals company LANXESS in Cologne, Germany. Raised access flooring is to be installed over the next five months on some 38,000 square meters of office space, including a load-bearing layer made of self leveling calciumsulfate screed. The self leveling screed is supplied by Dusseldorf-based CEMEX Deutschland AG on behalf of system flooring manufacturer Sybotec GmbH, Frammersbach, Germany, which is performing the work.

One unique feature: The screed is based on the LANXESS calcium sulfate binder CAB 30 Compound. As the future tenants, we are really pleased that our own products form the best basis for flooring, says engineer Michael Witte, Anhydrite Marketing Director in LANXESS' Advanced Industrial Intermediates business unit.

The raised access flooring, also referred to as raised flooring, enables occupants later on to design office space flexibly: Wherever a desk area is to be located, an opening is provided in the load-bearing layer. After completion of the floor, telecommunications equipment and electrical connections lie hidden in the hollow space between the load-bearing layer and the concrete floor.

MRC

Spot prices started to rally in late November after slumping 40% from early August, ICIS data showed. ⌠The main driver for the SBR price rebound is increasing feedstock BD costs, rather than demand. We are not optimistic about the first quarter of 2012 as there are concerns over a global slowdown next year, said a major tyre maker based in China.

BD prices rose toUSD2,100-2,150/tonne CFR NE Asia in the week ended 2 December, up by 35% from early November, according to ICIS.

BD is a major raw material in the production of SBR, making up more than 70% of the rubber's composition and cost. SBR is used in the production of tyres for the automotive industry. But auto sales in Asia have been slowing down, which will translate to weaker demand for tyres. Auto sales growth in China slowed to 3.2% in the first 10 months of 2011 against the 32% growth recorded in 2010, according to the China Association of Automobile Manufacturers.

Most major tyre makers in China, southeast (SE)Asia and India are operating at reduced rates of around 80%, industry sources said.

MRC