The UK’s Elementis has agreed to acquire US specialty chemicals company SummitReheis from an affiliate of private equity firm One Rock Capital Partners for $360 million. The combined company will create a business with annual sales of around $200 million.

Headquartered in Huguenot, New York, and employing about 270 people, SummitReheis produces a range of critical active ingredients and materials used in personal care, pharmaceutical and dental products. The company’s main focus, accounting for more than 60% of sales, is the manufacture and sale of aluminum- and zirconium-based active ingredients for anti-perspirant products, where they are used in conjunction with Elementis’ hectorite clays and gels.

SummitReheis’ pharma actives business makes active ingredients for indigestion and heartburn remedies while its specialty dental business manufactures plasters, alloys, discs and molding materials for various dental and other applications.

The US group has manufacturing operations in Germany, UK, USA and China, and is also planning to build plants in Brazil and Thailand. Revenues for the year ended Dec. 31, 2016 were expected to be $134 million with an underlying EBTIDA of around $28 million.

Anti-perspirant products are seeing growing consumption in developed markets, noted Elementis, particularly in the US, driven by demand for premium and higher efficacy products. In emerging markets, especially Latin America, India and southeast Asia, these products are benefitting from increasing market penetration as a result of changing lifestyle trends and higher discretionary income.

Paul Waterman, CEO of Elementis, said: “The Group is well positioned to capitalize on this acquisition through the enhanced geographic footprint and strong customer relationships that it brings. Together with our existing business, the acquisition of SummitReheis is transformative for our personal care business, creating a substantial, high return platform that will help accelerate our Reignite Growth strategy.”

Elementis will fund the acquisition with a mixture of cash and new debt facilities of $475 million over five years. Completion is expected to take place in the second quarter of 2017, subject to receiving antitrust clearances in Germany and the US.

The acquisition is expected to be accretive to material earnings in the current financial year. Elementis said it has identified run rate cost synergies of up to $3 million.