Kalama chemical plant to be sold
Friday, March 17, 2006 11:16 PM PST
By The Daily News and The Associated Press
Printable version
E-mail this articleSpecialty chemical maker Lubrizol Corp. is selling its food ingredients and industrial specialties businesses --- including its manufacturing plant Kalama --- as part of a strategy to divest non-core units.
Terms were not disclosed Friday pending closing of the deal, which is anticipated in the second quarter after regulatory approvals. The buyer is an affiliate of Sun Capital Partners Inc., of Boca Raton, Fla., a private investment company. The name of the affiliate also was not disclosed.
The businesses serve a variety of markets - food and beverage, personal care, textiles, paper, tires, industrial rubber and adhesives.
The Kalama plant, under the name Noveon Kalama Inc., employes about 150 people and produces specialty chemicals, polymer-based formulations and chemical additives for personal care, pharmaceuticals, household cleaning products, paints, inks, specialty papers, adhesives, textiles as well as for many other uses.
Ohio-based Lubrizol acquired most of the businesses with its acquisition of Noveon International Inc. in June 2004 for $1.84 billion. The 2005 sales for the business were approximately $400 million.
Included in the sale are six manufacturing sites located in Akron and Cincinnati; Charlotte, N.C.; Cheyenne, Wyo.; and Henry, Ill. Lubrizol said the buyer intends to retain all 625 employees at the locations.
The Kalama chemical plant was founded in 1962 as a Dow Chemical plant, but ownership changed frequently since then. Owners were once local but also have included B.C. Sugar Refining Co., Freedom Chemical and B.F. Goodrich Co.
Lubrizol shares rose 1 cent to close at $42.92 Friday on the New York Stock Exchange.
On the Web: www.lubrizol.com and www.noveon.com
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