Chase Acquires Two Henkel PU Businesses
Chase Corporation Acquires Specialty Chemical Product Lines
February 2, 2015
BRIDGEWATER, Mass. — Chase Corporation (NYSE MKT:CCF) announced that it has acquired two product lines from Henkel Corporation, a leading global manufacturer of adhesives with North America Operations headquartered in Rocky Hill, CT. The businesses were acquired for a purchase price of $33.3 million, excluding any working capital adjustments and acquisition related costs. As part of this transaction, Chase is acquiring Henkel’s Microspheres business, sold under the Dualite® brand, located in Greenville, SC, as well as obtaining exclusive distribution rights and intellectual property related to Henkel’s Polyurethane Dispersions Intermediates business, currently operating in the Elgin, IL location. The purchase was funded entirely with available cash on hand.
Adam P. Chase, President and Chief Operating Officer, commented,
''We are excited by the addition of specialty chemical product technologies that enable the efficient use of resources, reduce carbon footprint and improve worker safety. The Dualite brand is a great addition to the Chase portfolio.
''Chemical intermediates are building-block raw materials used by formulators to enhance their own products. This acquisition fits well with our strategic intent to broaden our Specialty Chemical expertise.''
Thermoplastic microspheres and water-based polyurethane dispersions offer unique product technologies that add value to customer applications. These “green” technologies provide development solutions that can be optimized for reducing energy and water usage, greenhouse gasses, and overall processing cost.
Dualite polymeric microspheres provide a unique value proposition via lowering material costs, weight reduction, density reduction and sound dampening focusing a spotlight on “lightweighting,” resulting in enhanced fuel efficiency and reduced emissions.
Water-based polyurethane dispersions are a rapidly growing segment of the specialty chemicals industry. Polyurethane polymers have traditionally exhibited high toughness, versatility and wide range of superior properties, such as abrasion resistance, impact strength and low temperature flexibility, which are the driving forces to their continuously expanding usage in many applications. Waterborne dispersion technology allows ease of formulation, application and cleanup as well as environmental advantages such as the elimination of monomers, odor and reduction of volatile organic compounds (VOC).
The ChemQuest Group, Cincinnati, OH, a leading specialty chemicals consulting firm, advised Chase on this acquisition and provided critical guidance, analysis and insight into the strategic development, direction and execution of this exciting new platform initiative.
Chase Corporation, founded in 1946, is a leading manufacturer of protective materials for high reliability applications throughout the world.