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Taminco to buy Kemira formic acid business for USD191 mln

December 24/2013

MOSCOW (MRC) - U.S. chemicals group Taminco Corp said on Monday it would broaden its offering by acquiring the formic acid business of Finland's Kemira for 140 million euros (USD191 million), said Reuters.

The business, which includes a plant in Oulu, Finland, had sales last year of around 140 million euros and earnings before interest, taxes, depreciation and amortization of 23 million.

Taminco, which makes ingredients for crop protection products and animal feeds, said the deal helped it add new product lines. Formic acid's uses include the preservation of animal feed and de-icing airport runways.

Kemira had been expected to shed the business as part of a shift to focus on its water treatment business. However, analyst Antti Saari from Pohjola Markets said the deal price was lower than expected.

"The valuation looks low. There had been speculation of a price closer to 200 million euros," he said. Shares in Kemira were flat on the Helsinki bourse in thin trading. Kemira said it expected to report a capital gain from the deal in the first quarter of next year.

As MRC wrote before, Kemira signed an agreement to sell its distribution of hydrochloric acid, sulfuric acid and sodium hydroxide (caustic soda) in Denmark to Brenntag Group. The deal includes the distribution business and certain assets in Copenhagen. Revenue of the divested business in 2012 was approximately EUR 15 million and the transaction is expected to be completed during the first quarter of 2014.

Kemira is a global chemicals company serving customers in water-intensive industries. We provide expertise and chemicals that improve our customers' water, energy and raw material efficiency. Our focus is on pulp & paper, oil & gas, mining and water treatment. In 2012, Kemira had annual revenue of EUR 2.2 billion and around 4,900 employees.
Author:Anna Larionova
Tags:liquid caustic soda, rigid caustic soda, min.udobreniya, Kemira.
Category:General News
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