This is the second time that ASK has agreed to buy the SI business. It previously agreed terms in July 2019, but the US firm announced in April 2020 that the sale had fallen through without giving any reason.

SI’s industrial resins business serves a wide range of markets and applications such as foundry, friction, abrasives, refractory, paper impregnation, insulation and composites.

The acquisition includes manufacturing sites in Rio Claro, Brazil, Ranjangaon, India, and Johannesburg, South Africa, as well as licensed technology and multiple tolling agreements globally. The transaction is expected to close later this year.

SI Group will carve out related businesses at these sites, including the manufacture of rubber and adhesives, oilfields and surfactants, as well as foundry products in Brazil, and will operate tolling agreements with ASK.

“We remain confident this is the right strategic move for our employees and our business. ASK Chemicals has proven industry expertise that will add significant value and continuously enhance these businesses,” said David Bradley, president & CEO of SI Group. “The deal also allows us to focus more intentionally on building and growing our portfolio as a performance additives powerhouse.”

Private investment fund Rhone Capital has owned ASK Chemicals since 2014, when it bought the company from joint owners Clariant and Ashland. ASK Chemicals was originally formed in 2010 when Ashland and Süd-Chemie, which was acquired by Clariant in 2011, merged their foundry chemicals businesses.

Author: Elaine Burridge, Freelance Journalist