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SK Capital to acquire specialty polymers business from Baker Hughes

August 03/2020

MOSCOW (MRC) -- SK Capital Partners, a private investment firm focused on the specialty materials, chemicals and pharmaceuticals sectors, has announced it has signed a definitive agreement to acquire the specialty polymers business from Baker Hughes, reported Chemweek.

The business, with manufacturing operations at Barnsdall, Oklahoma, produces specialty low molecular weight olefin polymers, including a range of differentiated functional polymers and premium, high melting point polyethylene waxes. Over its 85-year history, the business has been dedicated to innovation and has developed a strong reputation as a premium specialty supplier and solutions provider to its diverse customer base, SK Capital says.

Mario Toukan, a managing director of SK Capital, said, The specialty polymers business is a pioneer in the development of specialized polymerization technologies. We see tremendous opportunity for growth by further developing functional, solutions-oriented products that solve problems and create significant value for customers.
 
SK has extensive corporate carveout expertise and we look forward to partnering with management to transform the business into a world-class independent specialty chemical company with an intense focus on operational excellence, added Jonathan Borell, a managing director of SK Capital. As an independent company, the specialty polymers business will be able to build upon and enhance its reputation as a reliable provider of innovative and high-quality polymers.
 
SK Capital and Baker Hughes are working together to execute a seamless transaction plan to continue to serve the specialty polymers businesss customer base reliably and safely, the companies say. The transaction is expected to close in the second half of 2020. Morgan, Lewis & Bockius acted as legal counsel to SK Capital and committed debt financing was provided by KeyBanc Capital Markets. Evercore acted as financial advisor and King & Spalding served as legal counsel to Baker Hughes.

As MRC informed earlier, SK Capital (New York, New York) is acquiring a majority interest in Techmer PM (Clinton, Tennessee), a designer and producer of engineered compounds and polymer modifiers. John Manuck, president and CEO of Techmer, says access to the resources of SK Capital will allow Techmer to grow beyond North America.

We remind thatn SK Global Chemical, a subsidiary of SK Innovation, plans to shut down its production processes for ethylene and ethylene propylene diene monomer (EPDM) within its naphtha cracking center in Ulsan, South Korea. The 200,000-t/y naphtha cracker, which started commercial operation in 1972, and the EPDM unit, which began commercial operation in 1992, will be mothballed from December 2020 to shift the company's focus to high-value added chemicals.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PE, homopolymer PP, propylene, HDPE, ethylene, petrochemistry, natural rubber, SK Corporation, SK global chemical, Technip, Russia, South Korea.
Category:General News
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