MOSCOW (MRC) -- Albemarle Corporation, a leader in the global specialty chemicals industry, has announced that it has completed the sale of its Fine Chemistry Services business to W. R. Grace & Co. for approximately USD570 million, consisting of USD300 million in cash, and the issuance to Albemarle of preferred equity of a W. R. Grace & Co. subsidiary having an aggregate stated value of USD270 million, reported CISION.
The sale includes Albemarle's operations in Tyrone, Pennsylvania and South Haven, Michigan.
"The sale of our Fine Chemistry Services business has enabled us to unlock substantial value from our portfolio of quality assets," said Albemarle's CEO Kent Masters. "With the proceeds from this transaction, we have enhanced our available resources to execute our long-term growth strategy."
As MRC wrote previously, in 2018, W. R. Grace & Co. completed the USD416 million acquisition of the Polyolefin Catalysts business of Albemarle Corporation. The acquired business primarily develops and manufactures proprietary and custom-manufactured single-site catalysts as well as metallocenes and activators used in the production of plastic resins. The transaction also includes a comprehensive series of highly optimized Ziegler-Natta catalysts for polyethylene (PE) production.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, polypropylene (PP) shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
Albemarle Corporation, headquartered in Charlotte, N.C., is a global specialty chemicals company with leading positions in lithium, bromine and refining catalysts. The company actively pursues a sustainable approach to managing our diverse global footprint of world-class resources.
A leader in polyolefin catalysts and licensing, W. R. Grace has the world’s broadest portfolio of PP and PE catalyst technologies used to produce thermoplastic resins for a variety of applications. A leading innovator and strategic partner to its customers, Grace supplies catalyst solutions for all polyolefin processes, as well as PP process technology and process controls. Grace employs approximately 3,700 people in over 30 countries.