Texas Pacific Group will acquire the KRATON Polymers Group of Companies from Ripplewood Holdings LLC and other i a deal valued at $770 million. KRATON is the world's largest producer of styrenic block copolymers, a family of products used in adhesives, sealants, asphalt and bitumen modification.
KRATON Polymers is a premier, global specialty chemicals company and the world's largest producer of styrenic block copolymers (“SBCs”), a family of products whose chemistry was pioneered by the Company over forty years ago.
SBCs enhance the performance of applications including adhesives, sealants, asphalt and bitumen modification, footwear, packaging, compounding and personal hygiene products.
The Company has the leading position in all of its core markets and is the only producer of SBCs with global manufacturing capability. The Company has manufacturing facilities in Belpre, OH, The Netherlands, Germany, France, Brazil and Japan. The business has annual revenues in excess of $600 million.
TPG partner Kelvin Davis said, “We are enthusiastic about the opportunity to acquire KRATON Polymers. The Company is a global market leader and has consistently demonstrated its ability to grow through innovation, customer service and quality excellence. We look forward to working with CEO Steve Wood and the Company's management and employees in continuing to expand the KRATON franchise.”
Ian Snow, a Managing Director of Ripplewood, said, “KRATON has accomplished a great deal since we acquired the company in 2001, enabling us to earn an attractive return for our investors. Under the guidance of Chairman John Georges and the leadership of CEO Steve Wood and his management team, KRATON has improved its financial and operational performance and has expanded its position as the leading producer of styrenic block copolymers. We are confident that KRATON and its 1,000 employees worldwide will achieve continued success under Texas Pacific Group's ownership.”
KRATON Polymers CEO Stephen Wood said, “We are enthusiastic about continuing to grow under TPG's stewardship. Over the past three years, we have accomplished a great deal including our transition to a highly successful standalone company. The support and commitment shown by TPG gives me confidence that together we will find success in the next stage of our evolution.”
UBS Investment Bank acted as merger advisor to TPG. Morgan Stanley and Credit Suisse First Boston served as financial advisors to Ripplewood.
