LITTLETON, Colo., Sept. 3, 2013 (GLOBE NEWSWIRE) -- Innospec Inc. (Nasdaq:IOSP) today announced that it has acquired Chemsil Silicones Inc and the Chemtec Chemical Co., from its private owners. Chemsil develops and markets silicone-based formulations to the personal care industry. Chemtec, which distributes a wide range of personal care ingredients, is focused on customers on the West Coast. The companies have combined sales of $40 million.
Commenting on the deal, Patrick Williams, President and CEO of Innospec said: "Personal Care is the strategic core of our Performance Chemicals business, and we have been seeking to add to both the technology base and the geographical footprint of this business. We are delighted to acquire Chemsil, which brings complementary technologies to our current portfolio, and Chemtec, which provides us with a solid base in the important West Coast market. We expect the acquisition to be immediately accretive."
James Harrison, President of Chemsil and Chemtec said, "Although we have been pleased with the growth of our companies over the past few years, we have concluded with our lead advisors CIM Partners that we needed to be part of a larger group to realize our ambitions to grow our presence in the US, and to market our technologies internationally. Joining Innospec provides us with the infrastructure and critical mass to accelerate that expansion and focus on future technologies."
Chemsil will become part of Innospec's Performance Chemicals business, which develops and markets a range of surfactants and emollients to the personal care industry. Chemtec will continue to operate as a key distributor in this market, offering a high level of customer service.
Bruce McDonald, Vice-President of Innospec Performance Chemicals in the Americas added, "Chemsil products are a great complement to our existing product portfolio, and we look forward to providing our customers a wider range of products for these applications, making Innospec a more valuable supplier to this industry. Our strategy is to continue to invest in R&D and geographical expansion, to establish Innospec as an innovation leader in personal care."
The acquisition has been funded through the successful negotiation of an amendment and increase to the Company's existing revolving credit facility agreement from $100 million to $150 million. The secured facility remains available through to December 2016. In addition, the amendment allows the Company to request a further amount of up to $50 million to be committed by various lenders. Mr. Williams noted, "We are very pleased to complete this financing, which demonstrates the continued confidence of our banking group in our business prospects and acquisition strategy."
About Innospec Inc.
Innospec Inc. is an international specialty chemicals company with approximately 900 employees in 20 countries. Innospec manufactures and supplies a wide range of specialty chemicals to markets in the Americas, Europe, the Middle East, Africa and Asia-Pacific. Innospec's Fuel Specialties business specializes in manufacturing and supplying the fuel additives that help improve fuel efficiency, boost engine performance and reduce harmful emissions. Innospec's Performance Chemicals business provides effective technology-based solutions for our customers' processes or products focused in the Personal Care; Polymers; and Fragrance Ingredients markets. Innospec's Octane Additives business is the world's only producer of tetra ethyl lead.
Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Such forward-looking statements include statements (covered by words like "expects," "anticipates," "may," "believes" or similar words or expressions), for example, which relate to operating performance, events or developments that we expect or anticipate will or may occur in the future (including, without limitation, any of the Company's guidance in respect of sales, gross margins, pension liabilities and charges, net income, growth potential and other measures of financial performance). Although forward-looking statements are believed by management to be reasonable when made, they are subject to certain risks, uncertainties and assumptions, and our actual performance or results may differ materially from these forward-looking statements. Additional information regarding risks, uncertainties and assumptions relating to the Company and affecting our business operations and prospects are described in the Company's Annual Report on Form 10-K for the year ended December 31, 2012, and other reports filed with the U.S. Securities and Exchange Commission. You are urged to review our discussion of risks and uncertainties that could cause actual results to differ from forward-looking statements under the heading "Risk Factors" in such reports. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.