Innospec has announced its intention to sell its Aroma Chemical business unit, Innospec Widnes, to Emerald Kalama Chemical, a division of Emerald Performance Materials. Terms of the deal were not disclosed, but the unit is thought to be valued at US$40.5 million. The sale is expected to close in July 2015 and Innospec Widnes will become part of the Emerald Kalama Chemical flavor and fragrance business.
Peter M Fielder, vice president of Emerald Kalama Chemical’s flavor and fragrance product line stated, “The acquisition of Innospec Widnes helps us accomplish several key strategic goals. With the acquisition, we are taking a significant step to expand our footprint, global reach and service to customers in the flavor and fragrance industry. The operation in Widnes increases our manufacturing capabilities and provides a great base from which to serve customers in Europe and the rest of the world. The Innospec Widnes products will also complement our current portfolio, roughly doubling the range of materials in our aroma chemical line. We are very enthusiastic about this acquisition and feel it is a great fit for Emerald.”
Patrick S. Williams, President and CEO of Innospec said: “We have been looking to focus more of our resources on our key businesses and markets that provide us with the best growth opportunities. We have felt for some time that we were unable to provide the Aroma Chemicals business with the support it needs to grow in this market. We believe that the business will flourish under ownership whose core strategic focus includes the Aroma Chemicals markets.
“We have made our strategy very clear. We will continue to focus on Fuel Specialties, Oilfield Specialties and Personal Care, where the markets remain attractive, and our strong commitment to technology development and customer service provides opportunities for future growth.”
Innospec Widnes’ flagship product, Lilestralis Pure, is one of the most widely used aroma chemicals in the world.