May 18, 2022

Malaysia’s Petronas in $2.4bn deal to buy Swedish chemical maker

Both companies see acquisition as opening new growth paths

Malaysia’s Petronas Chemicals is buying Swedish chemical maker Perstorp Holding. (Source photos courtesy of Petronas Chemicals and screenshot from Perstorp Group YouTube page) P PREM KUMAR, Nikkei staff writerMay 17, 2022 21:12 JST

KUALA LUMPUR — Malaysia’s Petronas Chemicals Group, a subsidiary of state energy firm Petroliam Nasional Berhad (Petronas), said on Tuesday it will acquire Swedish specialty chemicals maker Perstorp Holding in a deal worth 2.3 billion euros ($2.4 billion).

Petronas Chemicals said it signed a securities purchase agreement on Saturday to acquire all shares in Perstorp from European private equity firm Financière Forêt S.à.r.l for 1.54 billion euros in cash and take on Perstorp’s existing debt of 762 million euros.

“Perstorp is an outstanding strategic fit for Petronas Chemicals and enables us to participate in attractive end-markets such as paints and coatings, construction, automotive, personal care and animal nutrition that share a robust growth outlook,” Mohd Yusri Mohamed Yusof, managing director and CEO of the Malaysian company, said in a statement.

In a separate release, Jan Secher, Perstorp’s president and CEO, highlighted advantages for the Swedish company.

“By tapping into PCG’s strength and market leading position in the Asia Pacific region, we are confident that Perstorp can continue to develop into its next phase of growth,” Secher said.

According to its website, Perstorp was established more than 140 years ago and has expertise in resins and coatings, engineered fluids and animal nutrition markets.

The Swedish company also operates in 26 countries and has seven manufacturing sites and three research and development centers. It employs about 1,500 people and has over 2,600 customers worldwide. It offers 130 products within 30 product groups.

In the financial year ended December 2021, Perstorp recorded 1.3 billion euros in revenue and 103 million euros in after-tax profit.

For the same period, Petronas Chemicals had a net profit of 7.35 billion ringgit ($1.67 billion) on the back of 23.03 billion ringgit in revenue.

According to Mohd Yusri, Perstorp will add up to 2.3 metric tons a year to Petronas Chemicals’ production capacity and contribute about 28% in incremental revenue to the company based on the 2021 results.

The completion of the acquisition is subject to relevant regulatory and shareholder approvals.

https://asia.nikkei.com/Business/Business-deals/Malaysia-s-Petronas-in-2.4bn-deal-to-buy-Swedish-chemical-maker

May 18, 2022

Bad Quarter for Sadara

Saudi-US chemical JV Sadara’s profit slips 97% on higher feedstock costs

Specialized in producing a wide range of specialty chemicals, the company said its profits were hit by an increase in feedstock costs.

RIYADH: Sadara Chemical Co., a joint venture between oil major Saudi Aramco and US Dow Chemical Co., has posted a 97 percent drop in profit in the first quarter as compared to the same quarter a year earlier.

On the back of higher feedstock prices, profits of the giant JV went down from SR1.6 billion ($431 million) to SR45.9 million, a bourse filing showed.

The decline in profit was coupled with a revenue drop of over 11 percent to SR3.9 billion during the quarter.

Specialized in producing a wide range of specialty chemicals, the company said its profits were hit by an increase in feedstock costs.

However, it highlighted that selling prices were higher compared to the same quarter last year.

https://www.arabnews.com/node/2083886/business-economy

May 18, 2022

Bad Quarter for Sadara

Saudi-US chemical JV Sadara’s profit slips 97% on higher feedstock costs

Specialized in producing a wide range of specialty chemicals, the company said its profits were hit by an increase in feedstock costs.

RIYADH: Sadara Chemical Co., a joint venture between oil major Saudi Aramco and US Dow Chemical Co., has posted a 97 percent drop in profit in the first quarter as compared to the same quarter a year earlier.

On the back of higher feedstock prices, profits of the giant JV went down from SR1.6 billion ($431 million) to SR45.9 million, a bourse filing showed.

The decline in profit was coupled with a revenue drop of over 11 percent to SR3.9 billion during the quarter.

Specialized in producing a wide range of specialty chemicals, the company said its profits were hit by an increase in feedstock costs.

However, it highlighted that selling prices were higher compared to the same quarter last year.

https://www.arabnews.com/node/2083886/business-economy

May 16, 2022

Atmos Technologies

17 Campus Boulevard, Suite 100, Newtown Square, PA 19073

Ph: (610) 436-4314

www.atmos-technologies.com

Three-firm merger creates new environmental solutions provider: Atmos Technologies

NEWTOWN SQUARE, PA — The merger of Rusmar, Inc., NCM Odor Control and Crowley Chemical Company brings three long-established, progressive chemical companies under one roof.

The new firm, Atmos Technologies, is a one-of-a-kind, global environmental solutions provider focusing on sustainability, recycling and regulatory compliance across a wide array of markets essential to our communities.

“The original companies, on their own, did not represent who we are as a total company,” Atmos CEO Phil Johnson said. “We wanted to add visibility to the breadth of environmental solutions and technologies we provide to our customers and the community as the new entity we have become.”

Founded in 1986 in West Chester, PA, Rusmar, Inc. specialized in the development of aqueous foam formulations and custom application equipment to enhance regulatory compliance, eliminate VOC emissions and control odors prevalent at solid waste landfills and environmental remediation sites.

NCM Odor Control developed odor neutralization formulations and custom-fabricated application equipment essential to preventing nuisance odors from escaping to surrounding communities. Solutions include stationary, perimeter and mobile systems for odor abatement at the source that are widely utilized across North America at solid waste landfills, transfer stations and environmental remediation sites. The company was founded in 1987 in Broadheadsville, PA.

Crowley Chemical Company celebrated its 100^th year in existence in 2020. It was formerly headquartered in New York City. The company’s expertise lies in the production of specialty blended solutions utilized in a wide array of sustainable end products. Markets include renewable tire & rubber applications, a patented 100% recycled asphalt technology and sustainable adhesives. Crowley’s technologies are widely used as extenders, process aids and formulary components to improve performance and processing while lowering costs.

“This merger enhances the breadth and depth of potential solutions for our customers’ real regulatory, compliance and environmental challenges,” Johnson said. “As a one-stop solutions provider, Atmos is the only company in business in North America providing this wide a range of products and services to industries who need them.”