Nouryon Acquires Carboxymethyl Cellulose Business to Boost Growth

Nouryon announced the acquisition of the carboxymethylcellulose (CMC) business of J.M. Huber Corporation to continue its accelerated growth plan. The transaction will greatly expand Nouryon's CMC product portfolio. CMC is a sustainable bio-based water-soluble polymer that can be used as a thickener, binder, stabilizer and coalescent. The two companies are quite complementary in many CMC end markets, such as home and personal care, mining, food, pharmaceuticals and paper packaging.

CAS: 9004 32 4

Finnish factory under acquisition of Nouryon CMC business

The acquisition underscores Nouryon's strategy to invest in attractive growth markets, including bolt-on acquisitions. The acquired business unit produces a complete series of CMC products and provides services to customers in more than 80 countries and regions, including China, with sales of approximately 135 million euros. The business includes a world-class production plant and advanced research and development facility in Annekowski, Finland, and approximately 240 employees will also join Nouryon.

Charlie Shaver, Chief Executive Officer of Nouryon, said: "We are delighted by the opportunity to acquire this high-quality business with a broad product range that complements our existing CMC portfolio, enabling us to serve our current and future customers. offering a broader range of solutions. This acquisition also confirms our commitment to invest in sustainable growth markets. We look forward to the employees of this business joining the Nouryon family."

"We would like to thank the employees of the CMC business unit for their years of service to Huber and their unwavering commitment to Huber's core principles, especially the emphasis on safety, environmental sustainability and operational excellence," said Huber Group CEO “We are delighted that Nouryon, with our shared core values, has become the new strategic owner of this business and continues to provide high-quality products and services to our long-term customers in the CMC business,” said Mike Marberry, Chief Executive Officer and President.

Moelis & Company LLC acted as exclusive financial advisor to Nouryon, and Latham & Watkins LLP acted as legal advisor. Citi acted as exclusive financial advisor to Huber Group, and DLA Piper acted as legal advisor. The transaction is expected to close in the second quarter of 2020, subject to regulatory approvals.

About Nouryon

Nouryon is a global leader in specialty chemicals. Industries around the world rely on its solutions for essentials such as personal care, cleaning supplies, paints, building materials, agricultural products, food and pharmaceuticals to produce everyday needs. Building on our nearly 400-year heritage, the dedication of our approximately 7,650 employees worldwide and a shared commitment to customers, business growth, safety, sustainability and innovation, Nouryon has consistently delivered strong financial performance. Nouryon's business covers more than 80 countries around the world, and it owns many industry-leading product brands.