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Showa Denko to acquire ILAG Group

June 24/2019

MOSCOW (MRC) -- Showa Denko (SDK) has decided to acquire all shares in ILAG Industrielack AG, which leads the ILAG Group (ILAG), a specialty non-stick coating chemicals manufacturing company headquartered in Wangen, Switzerland, and signed a stock purchase and sale agreement with the current owners, a coalition of investors led by Helvetica Capital AG, a Swiss-based private equity firm, said Bloomberg.

Non-stick coating chemicals (NSCs) are used on consumer goods such as cookware, bakeware, and home electrical appliances, and also on industrial goods including automotive parts and other industrial equipment, for the purposes of preventing sticking of substances on their surfaces and supporting low friction and release during use. The global market for NSCs is put about \130 billion (about USD1.2 billion) a year (SDKs estimate for 2019).

ILAG has the fourth largest share in the consumer-goods NSC market of worldwide operating companies, and the second largest share of this segment in Europe. Thus ILAG brand has strong presence in the European market. ILAGs products are applied not only on consumer goods but also on industrial goods including automotive parts. ILAG exports its products manufactured in Switzerland to more than 50 countries.

Moreover, ILAG has a production base in China, and consumer goods manufactured by ILAGs customers in China are sold worldwide. On the other hand, GMM Group (GMM), a manufacturer of NSCs which SDK acquired in November 2016, has a large market share in NSC market for consumer goods in the US, and GMMs main customers are major cookware/bakeware manufacturers based in the United States.

Therefore, SDK is confident that ILAG and GMM are highly synergetic. For example, the two companies can play complimentary roles in terms of each companys main markets in the world. After the acquisition of ILAG, annual sales figure of SDKs NSC business will leap up to about USD60 million (about \6.6 billion). As a result, SDKs NSC business will have strong presence and competitiveness in global market, especially in the field of consumer goods.

As MRC wrote before, Showa Denko (SDK) decided to establish a new production site for thermosetting bulk molding compound (BMC) in Zhuhai, Guangdong Province, China, jointly with Eternal Materials Co., Ltd., a synthetic resin manufacturer based in Taiwan. BMC is a thermosetting bulk molding compound made from unsaturated polyester resin as main component, kneaded together with glass fiber and other additives. BMC is used as headlamp reflectors and engine covers for car applications, and encapsulation material for home electrical appliances and precision parts.

Showa Denko K.K. is mainly engaged in the petrochemical business. The Petrochemical segment manufactures and sells olefin, organic chemicals and others. The Chemical Product segment supplies chemicals, industrial gases, special gas and functional drug for semiconductors, functional high molecular materials, among others.
Author:Anna Larionova
Tags:Showa Denko.
Category:General News
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