Akzo Nobel announced Monday that it has agreed to sell its Phosphorus Chemicals business to private equity firm Ripplewood Holdings LLC for Euro 230 million (U.S. $274 million). The unit is one of North Americas primary sources of phosphate esters forlubricants, among other products.
The companies said they expect the deal to close during the second quarter. Akzo Nobel, which is based in Arnhem, Netherlands, put the business up for sale in September. Ripplewood, of New York City, said it expects the business to grow in its hands.
We are excited about the growth prospects for the Phosphorus Chemicals business and are impressed by its management team, said Industrial Partner John Georges, former chief executive officer of International Paper. We look forward to providing the support the business needs to continue to grow and strengthen its position as a global market leader.
Akzo Nobel said it sold the business to give itself more financial room to maneuver. The unit makes phosphate esters and other organophosphorus products at plants in Bitterfield, Germany and Gallipolis Ferry, W.Va. It has 280 employees and had Euro 187 million in revenue last year.
Lubricant blenders use phosphate esters for flame retardancy in lubes such as turbine oils that are exposed to high temperatures. The phosphorus unit also makes products used in plastics, urethane foams and engineered resins.
This is Ripplewoods second venture into the chemicals industry. The firm sold Kraton Polymers last year, two years after buying the business from Royal Dutch/Shell. Other investments have included a telecom company, a Japanese bank, a catalog retailer, auto parts companiesand a recording label.