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Specialties Snapshot, Nov. 3-15
November 15, 2011 | By REBECCA COONS
Other than a handful of earnings reports and the usual small- to medium-sized acquisitions, specialty chemical firms have had a quiet two weeks.
Late-reporting specialty firms, for the most part, joined their peers in posting gains. Henkel's adhesives business achieved a 9% increase in third-quarter 2011 adjusted operating profits compared with the corresponding period of 2010, to €291 million on sales up 4%, to €2 billion. The increases reflect higher volumes and selling prices, Henkel says. IFF profit increased 7%, to $82.2 million, as strong flavors offset weak fragrances. Momentive Specialty Chemicals, the thermoset resins operations of Momentive Performance Materials Holdings (Momentive), posted earnings 66% lower, on weaker economic conditions and headwinds in its specialty epoxy business. Momentive posted a net loss of $32 million, on softness in silicones demand.
M&A deals were small, but plentiful:
Michelman acquired Clariant's Licomer line of floor polish additives. The divestment is part of Clariant’s strategy to focus on its core business in solid waxes.RFI Ingredients says it has acquired Graymor Chemical, a global bulk supplier of nutraceutical, pharmaceutical and vitamin ingredients.
AkzoNobel and Fluorchemie formed CF Carbons (Frankfurt), an equally owned joint venture producing the fluorocarbon HCFC22 (‘R22’).
Lanxess bought Verichem, a Pittsburgh-based biocides firm, further bolstering its material protection products (MPP) business unit after acquiring Syngenta's material production business in March.
Lubrizol bought Chemtool, a U.S. manufacturer of lubricating greases.
Ashland agreed to sell its aviation and refrigerant lubricants business, a maker of polyol ester-based synlubes, to privately held Monument Chemicals. Annual revenue for the business is about $50 million.
Dye-maker Kiri Industries acquired SMS Chemical (Taipei, Taiwan).
In project news, Rockwood opened a butyllithium plant in India, and Rhodia expanded dispersible silica production capacity at its Chicago Heights, IL site by 33%.