Another recent oleochemical-related news is the acquisition of pine chemicals producer, Arizona Chemical, by Kraton Performance Polymers, a global producer of highly-engineered polymers. Kraton has acquired all of the capital stock of privately-held Arizona Chemical for a cash purchase price of $1.37 billion. Both companies end-use market exposures are reportedly highly complementary particularly in markets such as adhesives, roads and construction, coatings, and oilfield chemicals.
Kraton said the acquisition will reduce its overall exposure to hydrocarbon-based feedstocks. The acquisition is expected to close in late 2015 or early 2016. The blog reported in December 2014 of the intention of Arizona Chemical’s owners to sell the company. Its facilities are located across the US, Britain, France, Germany, Sweden and Finland.
Arizona Chemical is globally one of the largest producer of tall oil-derived chemicals. I have been covering this industry for 15 years since my stint with the former Chemical Market Reporter. This industry is pretty small and you can learn more about it by visiting the Pine Chemicals Association. By the way, I will be moderating a panel composed of industry experts within the oleochemical and pine chemicals markets at the incoming INFOCAST Bio-based & Sustainable Products Summit on January 13-14, 2016, in San Diego, California. Save the Date!