Chemtura Snares Hatco and Anderol


Specialty chemicals company Chemtura said that through acquisition it plans to move into two lubricants markets.

Chemtura Corp. and Kaufman Holdings Corp. announced Dec. 21 that they have signed a letter of intent for Chemtura to acquire Kaufmans stock in a cash transaction expected to close in the first quarter of 2007. Terms of the transaction were not disclosed.

Through this transaction, Chemtura would gain strong positions in two exciting new markets: high-growth lubricants for CFC-free refrigeration compressors and high-purity synthetic lubricants, said Chemtura Chairman and CEO Robert Wood.

Kaufman is a privately held corporation with 300 employees and 2006 revenues in excess of $200 million. It has manufacturing facilities in Fords and East Hanover, N.J., and Oakville, Canada.

Kaufman includes two operating companies, Hatco Corp. and Anderol Inc. Hatco is a producer of polyol esters used for synthetic lubricant applications, including aviation turbine oils and lubricants for CFC-free refrigeration compressors. Hatco produces more than half of the polyol esters base stock used to make jet turbine oils worldwide. Anderol is a producer of synthetic lubricants used in aviation and industrial applications such as compressors, bearings, gears and food-grade machinery.

Chemtura supplies a wide range of petroleum additive components and base stocks to the lubes industry, claiming to account for 12 percent of the former worldwide.

Based in Middlebury, Conn., Chemtura currently produces esters in Elbeuf, France; phosphate esters in Manchester, England; polyalkylene glycols in California, Illinois and Texas; and polyalphaolefin and poly internal olefin in Elmira, Ontario.

Chemtura’s additives for the lubricants industry include antioxidants, antiwear additives, corrosion inhibitors, dispersants, emulsifiers, extreme pressure additives, grease thickening components, lubricating additives and viscosity modifiers. It is the largest supplier of natural petroleum sulfonates for metalworking fluids, and one of the worlds few suppliers of high-viscosity polyalphaolefins. Chemtura was formed in 2005 through the merger of Crompton Corp. and Great Lakes Chemical, and had pro-forma revenues that year of $3.9 billion.

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