Regulators Approve Resin Merger
European antitrust regulators have given the green light to the merger of two major resin manufacturers.
Allnex, an international supplier of resins backed by investor Advent International, announced Sept. 2 that it had received the agency’s clearance for its acquisition of Nuplex, a global manufacturer of resins, to combine their businesses.
“There is a strong strategic logic for combining Allnex and Nuplex,” said Ron Ayles, a managing partner at Advent International and head of the firm’s global chemicals practice.
“One of the most important results of this business combination will be that customers will have access to a wider global manufacturing network, and broader and more innovative product ranges based on state-of-the art technologies,” he added in the companies’ joint statement.
With the EC’s clearance, the companies have obtained all relevant regulatory approvals, and the transaction is now expected to close today (Sept. 13), Nuplex said in a statement to shareholders.
The new corporate identity of the combined company will not be revealed until that day.
New German Headquarters
Receiving the EC’s approval is one of the final milestones in the process of creating what is intended to be the leading industrial coating resins company, according to Allnex.
“We will be stronger as one. Allnex and Nuplex share a commitment to high quality, innovation and responsiveness to the needs of customers in the coating resins sector,” said Allnex CEO Miguel Mantas, who will serve as the new company's CEO.
Upon closing, the new headquarters of the combined company will be located in Frankfurt am Main, Germany, a region with a longstanding tradition in the chemical industry.
“The decision to choose Frankfurt for the future company’s headquarters was taken with the intention of establishing a new location, symbolizing a fresh start for our new company. We look forward to a future of strength, growth and diversity,” Rich Alexander said in the companies' joint statement. Alexander, a former executive vice president of PPG, will act as chairman of the new company's advisory committee.
“This heritage in combination with Frankfurt’s excellent infrastructure and logistical links make it an ideal location,” Allnex added in its statement.
‘Stronger As One’
Miguel Mantas, who joined Allnex as CEO in February, will become the CEO of the new company.
“We will be stronger as one. Allnex and Nuplex share a commitment to high quality, innovation and responsiveness to the needs of customers in the coating resins sector,” Mantas stated.
“I am proud to be bringing our two companies together, and I am confident that our combined expertise will allow the new entity to move forward to great success.”
Allnex, formerly Cytec Industries' Coating Resins business and acquired by Advent in 2013, is located in Brussels, Belgium. Reporting sales of approximately $1.5 billion, the company says it is a leading global producer of coating resins and additives for architectural, industrial, protective, automotive and special purpose coatings and inks.
Allnex offers an extensive range of products, including innovative liquid resins and additives, radiation-cured and powder coating resins and additives, and cross linkers for use on wood, metal, plastic, and other surfaces. Allnex has 17 manufacturing sites and 12 research and technology support facilities throughout the world, focusing on assisting its approximately 3,000 customers, it says.
Nuplex, which has its corporate office in Sydney, Australia, manufactures resins used in paints, coatings and structural materials. It reports annual sales of $1 billion. It also describes itself as a leader in rheology control coatings technology, as well as performance and industrial coating resins, particularly for automotive OEM, vehicle re-finish, wood, and protective coatings. It has 16 production sites located across Asia, Europe, America and Australia and New Zealand, and serves customers in over 80 countries worldwide, it adds.