Nouryon has signed an agreement to acquire the carboxymethyl cellulose (CMC) business of J.M. Huber Corporation. The transaction aims to broaden Nouryon’s portfolio of products in CMC, a sustainable, bio-based water-soluble polymer used as a thickener, binder, stabilizer and film former. The companies have largely complementary positions in CMC end markets, which include personal and home care, mining, food, pharmaceuticals and paper and packaging.
“We are very pleased that Nouryon, which shares our core values, will become the new strategic owner of this business and continue to provide excellent products and services to our long-standing CMC customers,” said Mike Marberry, CEO & president of J.M. Huber Corporation.
Strategic Investment in Growth Markets
The acquisition underlines Nouryon’s strategy to invest in growth markets, including bolt-on acquisitions. The business manufactures a complete line of CMC grades and serves customers in over 80 countries, generating sales of around 135 million euros.
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We are excited by the opportunity to acquire this high-quality business. With an expansive range of products that complements our existing CMC portfolio, this business will allow us to offer our current and future customers a significantly broader set of solutions,” commented Charlie Shaver, chairman and CEO of Nouryon.
Acquisition Outcomes
The acquisition includes a world-class manufacturing facility as well as an advanced R&D facility located at Äänekoski, Finland.
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We would like to thank our employees in the CMC business for their many years of service to J.M. Huber Corporation and for their strong dedication to the Huber Principles, especially our values of safety, environmental sustainability, and operational excellence,” said Marberry.
Moelis & Company LLC acted as exclusive financial advisor to Nouryon and Latham & Watkins LLP acted as legal advisor. J.M. Huber Corporation was advised by Citi as exclusive financial advisor and DLA Piper as legal advisor.
The transaction is expected to close in the second quarter of 2020, subject to regulatory approvals.
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This acquisition also confirms our commitment to investing in sustainable growth platforms. We look forward to welcoming the employees of this business into the Nouryon family”, continued Shaver.
Source: Nouryon