New Owner for AZ Chem

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Rhone Capital will sell a controlling interest in Arizona Chemical to private equity firm American Securities. Terms of the agreement have not been disclosed.

Arizona Chemical is a biorefiner of pine chemicals for the lubricants, fuel additives, adhesives, inks and coatings, mining and oleochemicals markets. Rhone Capital acquired the Arizona Chemical business from International Paper for $485 million in December 2006.

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The transaction, announced Monday and subject to regulatory approvals, is expected to close in the fourth quarter of this year. Rhone, along with other current investors and the management team, will retain 25 percent of the companys ownership and will retain pro rata representation on Arizona Chemicals board of directors.

New York City-based American Securities portfolio includes General Chemical, MECS and Fairmount Minerals in the chemical and related markets, along with a variety of companies in other industries.

Arizona Chemical has more than 1,000 employees and refineries in six countries. It has 10 production facilities in the United States and Europe. The company has headquarters in the United States in Jacksonville, Fla., and in Europe in Almere, Netherlands.

Rhone has offices in New York, London and Paris.