Chemtrade Buying Marsulex | May 9, 2011 Issue - Vol. 89 Issue 20 | Chemical & Engineering News
Volume 89 Issue 20 | p. 16 | Concentrates
Issue Date: May 9, 2011

Chemtrade Buying Marsulex

Sulfur Chemicals: Deal will expand Chemtrade's reach in refining and water treatment
Department: Business
Keywords: sulfuric acid, aluminum sulfate, oil sands

Canadian sulfuric acid producer Chemtrade Logistics is buying another Canadian producer of sulfur-based chemicals, Marsulex, in a deal valued at $434 million.

Chemtrade makes sulfuric acid, liquid sulfur dioxide, and sodium hydrosulfite. It generated $538 million in sales in 2010.

Marsulex's 2010 revenues were $300 million. It also makes sulfuric acid and liquid sulfur dioxide, as well as other sulfur chemicals such as aluminum sulfate, sodium bisulfate, and ammonium sulfate. In addition, it offers services to refineries such as the processing of hydrogen sulfide.

In a conference call with analysts about the deal last Thursday, Chemtrade's CEO Mark Davis, said aluminum sulfate, used in water treatment, will be an important addition to its product line. In addition, Marsulex has a particularly strong business in providing services to the refineries in Alberta that process bitumen from the oil sands.

Marsulex's environmental technologies unit--which offers air quality compliance systems and services to electric utilities, chemical plants, and other industrial customers--isn't included in the deal because such operations aren't part of Chemtrade's core businesses. That unit is being spun off under a holding company, Investis. Marsulex shareholders can either receive all cash from Chemtrade or some cash and shares of Investis.

The parties expect the deal to close in June.

 
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