Troy to Merge with Arxada

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Metalworking fluid biocides producer Troy and Arxada, a lubricants and biocides manufacturer, will merge their businesses, expanding the manufacturing and product portfolios of both businesses, the companies announced last week.

Troy supplies biocides, defoamers, and microbial contamination test kits for use in aqueous-based and water-dilutable metalworking fluids, coolants and lubricants. The company also makes metal carboxylate products used in lubricants. Based in Florham Park, New Jersey, the company produces over 400 preservatives, performance additives, and metal carboxylates at modern manufacturing facilities on 3 continents.

Biocide additives, also known as antimicrobial pesticides, biocidal substances or microbiocides, are effective at prolonging fluid performance life.

“The combination of Troy’s strength in architectural coatings and industrial preservation, leadership in IPBC technology and broad range of performance additives perfectly complements Arxada’s strengths in wet state preservation,” said Daryl Smith, president and CEO of Troy, in a Nov. 3 press release. “The joining of the companies will deliver significant added value to our customers going forward.”

Arxada, formerly known as Lonza Specialty Ingredients and based in Basel, Switzerland, makes biocides, corrosion inhibitors, lubricants and specialty additives for lubricants and metalworking fluids under its Microbial Control Solutions umbrella.

“The combination of Arxada and Troy will reinforce our position as a leading global provider of microbial control solutions,” said Arxada CEO Marc Doyle. “Our decision to merge with Troy just four months after our launch as an independent company highlights our ambition and commitment to creating the broadest and most innovative solutions for our customers in this sector.”

Formerly LSI, the business rebranded last month following its launch as an independent company in July after it was sold by Lonza Group. Arxada is owned by Bain Capital and Cinven. In 2011, Lonza acquired fellow biocides manufacturer Arch Chemicals for $1.4 billion.

Arxada runs several production plants in Visp, Switzerland, though the merger will help expand its capacity. “The proposed transaction will enhance Arxada’s commercial presence across the globe and add several production sites in important locations, including Newark, New Jersey; Horhausen, Germany; Moerdijk, Netherlands, and Kabin Buri, Thailand,” the company said.

The companies will close the transaction as soon as possible, subject to regulatory approval. Financial details of the merger have not been disclosed.