Private Equity Likes Chemicals

A series of new deals demonstrates that private equity firms are still eager to buy chemical businesses. Clayton, Dubilier & Rice has finalized its $1.8 billion purchase of Ashland’s water technology business and renamed it Solenis. In a press call, CDR principal Stephen W. Shapiro said the business will maintain its senior managers, including CEO John W. Panichella. As a stand-alone company, Solenis will invest in new-product development and monitoring services for the pulp and paper and industrial water markets. The company may even pursue acquisitions in the oil and gas, refining, and mining markets. Meanwhile, Sun Capital Partners has sold Emerald Performance Materials to another private equity firm, American Securities. Ohio-based Emerald produces specialty chemicals for food and industrial markets. Sun Capital created Emerald in 2006 from businesses that it bought from Lubrizol. American Securities says it plans to expand Emerald’s portfolio and global capabilities. And CCMP Capital recently announced plans to acquire Solvay’s Eco Services business, which produces and regenerates sulfuric acid, for $890 million.