Israel Chemicals Ltd. last week announced plans to acquire Supresta LLC for $352 million in cash, uniting two companies whose chemical specialties include products for fire safety.
New York-headquartered Suprestas offerings include the Syn-O-Ad line of lubricant additives and Fyrquel products that consist of triaryl phosphate esters used as fire resistant hydraulic fluids. Supresta in early June announced it would increase list prices 4 to 5 percent on selected products – including the Syn-O-Ad and Fyrquel lines – effective July, or as contracts allow to help offset rising raw material and energy costs. organophosphorus flame retardants, plasticizers, lubricants, fluids and wetting agents.
According to an Israel Chemicals statement, Supresta posted revenues of $248.8 million and an adjusted operating profit of $49.8 million in 2006
The Israeli company said it will integrate Supresta into its ICL Industrial Products segment, which they expect to create synergies, including in the purchase of raw materials. By joining forces, we will be creating an entity with a leading position in the global flame retardant fields, strength in high-potential new markets and an expanded sales reach into strategic geographic regions, said Yossi Shahar, president and chief executive officer of ICL Industrial Products.
Tel Aviv-based Israel Chemicals is a multinational specialty chemicals and fertilizer company whose bromine-based products are applied in flame retardants, along with industrial chemicals, organic intermediates for numerous industries and monomers for specialty polymers. The company said it produces about a third of the worlds elemental bromine. It also produces magnesia and chlorine-based salts. The segments major markets include western Europe, the United States, China, Japan and Taiwan.
Israel Chemicals reported revenues of $3.3 billion in 2006 with an operating income of $536 million. The industrial products segment reported $838 million in revenues for 2006 and operating income of $209 million. It employs 9,300 people worldwide.
Supresta employs more than 300 people worldwide. It operates manufacturing sites in Gallipolis Ferry, W. Va., and in Bitterfield, Germany. The Gallipolis Ferry site manufactures flame retardants, functional fluids, and numerous other phosphorus derivatives. The Bitterfeld plant has more dedicated units, producing a simplified inventory consisting of three product families: alkyl chloride phosphates, biphosphates, and inorganics.
Supresta was formed in July 2004, when Akzo Nobel sold its phosphorus chemicals flame retardant business to a private equity fund managed by Ripplewood Holdings LLC. Ripplewood is a global private equity investment firm based in New York.