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(PlasticsToday) -- W. R. Grace &
Co. is buying Sythetech Inc. for $19.2 million, augmenting its capacity for
specialty single-site and polypropylene (PP) catalysts. Synthetech, which is a
manufacturer of chemicals that specializes in organic synthesis,
biocatalysis, and chiral technologies, also has some business in the
pharmaceutical sector. Greg Poling, VP W. R. Grace & Co. and president of
Grace Davison said in a release that the acquisition gives the company
immediate production capacity for specialty single-site and PP catalysts,
"significantly enhancing our ability to supply our large global customers with
these specialized catalysts", while eliminating the need for a grass-roots
facility.
Synthetech's products will join Grace's line of PP and polyethylene (PE) catalysts, which include Polytrak,
Sylopol, and Magnapore. Grace recently announced a multi-year agreement to
supply PP catalysts to polyolefins giant Borealis
AG. The previously announced expansion of Grace's PP catalyst
manufacturing capacity at its Worms, Germany facility is expected to be in
operation in mid-2011.
The transaction has been approved by both companies' boards, but is subject
to Synthetech shareholder approval and clearance from the U.S. Bankruptcy Court.
Grace anticipates that the transaction will be completed during the fourth
quarter. Synthetech, which has 63 employees, operates its primary facility out
of Albany, OR. That operation includes production and R&D., while a
second location in San Diego is dedicated to R&D. It will be integrated into
Grace Davison's Specialty Technologies business. On June 28, Synthetech
announced that it had hired Brocair Partners LLC to conduct a strategic review
of its business.
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