Afton to Acquire Mexican Additives Firm

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Afton Chemical Corp. entered into a contract to acquire Mexico City-based lubricant additive manufacturer and distributor Aditivos Mexicanos, S.A.

Announced Monday, the purchase agreement is priced at roughly $182.5 million and will be finalized within the first half of 2017. Before the agreement can be finalized, however, it must go through customary closing processes, such as being approved by the Mexican Federal Economic Competition Commission.

Like Afton, Aditivos Mexicanos is in the chemical additives business. According to its website, Aditivos Mexicanos current additive portfolio includes 10 different categories of lube additive components, including detergents, antioxidants, demulsifiers and antiwear, extreme pressure and anti-foam agents.

Neither Afton nor Aditivos Mexicanos disclosed the capacity of the latters production facility in San Juan del Rio, 100 miles northwest of the capital. According to Aditivos Mexicanos website, the plant has reactors used to manufacture chemical components, polymer dissolving tanks and 37 blending and storage tanks.

Afton, which is among the four primary global suppliers of lubricant additive packages, has a global network of component and additive package manufacturing sites at locations that include Houston and Port Arthur, Texas; Feluy, Belgium, Manchester, United Kingdom; Singapore; Suzhou, China; Bedford Park and Sauget, Illinois; Rio de Janeiro; Hyderabad, India; and Orangeburg, South Carolina.

Aditivos Mexicanos facility in Mexico City will soon join that list, though Afton declined to comment on how the facilitys day-to-day operations will be affected. In a press release, Afton President Rob Shama noted its interest in Aditivos Mexicanos knowledge of the petroleum additives market.

Aditivos Mexicanos website says the company is affiliated with Chevron Oronite but does not elaborate. Chevron Oronite, a subsidiary of U.S.-based energy company Chevron, is a competitor of Afton and another of the four main additive package suppliers.

Richmond, Virginia-based Afton is a fully owned subsidiary of NewMarket Corp.

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Additives    Business    Mergers & Acquisitions