Arxada and Troy Merger Would Add Muscle in Microbial Control
Swiss specialty chemicals producer Arxada, which was recently sold by CDMO Lonza to private equity funds Bain Capital and Cinven, has made its first strategic move since the separation in July. The fledgling company has announced plans to merge with Troy Corporation, a globally oriented US player in microbial control.
Financial details of the proposed transaction have not been disclosed, and no expected closure date or even a potential new name post-merger revealed. The prospective joint owners said they will work to close the transaction as soon as possible after obtaining all customary approvals.
As part of the deal structure, Troy’s owners will invest an undisclosed sum in the combined company, thereby broadening its capabilities and strengthening the offering of the predecessors’ respective Microbial Control Solutions (MC) business while enabling the delivery of new solutions and value-added services.
With its broad expertise in the fields of paints and coatings, wood protection and preservation, home and personal care, plastics and textiles, energy and metal-working fluids, the US firm is regarded as a market leader. Arxada also stands to benefit from Troy’s technical expertise, customer relationships and wide portfolio of performance products as well its history of innovation, including the invention of 3-iodo propynyl butyl carbamate (IPBC), which the Swiss player currently does not manufacture.
Additionally, the proposed combination stands is expected to enhance Arxada’s commercial presence globally, adding several production sites in important business locations such as as Newark, New Jersey, USA; Horhausen, Germany; Moerdijk, the Netherlands; and Kabinburi, Thailand.
Marc Doyle, Arxada’s CEO, said the merger plans, coming only four months after the company’s separation from Lonza, “also fits with our strategy of expanding our geographic footprint and the scale and depth of our capabilities by bolstering our manufacturing capacity in MCS beyond North America into Europe and Asia.”
Daryl D. Smith, chairman, president and CEO of Troy, commented that the combination of the US company’s strength in architectural coatings and industrial preservation, along with its leadership in IPBC technology and broad range of performance additives, “perfectly complements Arxada’s strengths in wet state preservation.”
Author: Dede Williams, Freelance Journalist
