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SI Group to acquire Albemarle’s antioxidants and ibuprofen business

3:18 PM MDT | April 21, 2014

Bozich: Acquisition is the largest in SI Group’s history.

SI Group (Schenectady, NY) has agreed to acquire the antioxidant, ibuprofen, and propofol businesses of Albemarle for an undisclosed amount of cash. The deal includes manufacturing sites in Orangeburg, SC, and Shanghai, as well as technical support services in Baton Rouge, LA, and Shanghai. The deal is expected to close later this year. SI, a leading producer of phenolic resins, alkylphenolic resins, and alkylated phenols, will gain 500 employees as part of the deal.

Albemarle says the divested businesses "generated aggregate revenue of around $250 million on low-single digit segment margins." Albemarle's antioxidants business was included in the company’s stabilizers and curatives division. That division recorded about $240 million in sales during 2013, according to regulatory filings.

The ibuprofen and propofol businesses are part of Albemarle’s $290-million fine chemistry services business, within the company’s performance chemicals segment. Prior to 1 January, the division had been part of the fine chemistry segment.

The deal is “the largest in SI Group’s history,” says Frank Bozich, president and CEO of SI Group. “This acquisition is a natural fit to our expansion strategy, transforming SI Group into a solutions leader in the global antioxidant and pharmaceutical active ingredients markets.” SI Group has more than 2,200 employees.

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