Nexeo Solutions to Acquire Mexico’s Ultra Chem
Nexeo Solutions has agreed to acquire Mexican specialty chemicals distributor Ultra Chem for an undisclosed sum. Based in Mexico City, Ultra Chem represents major global producers both in Mexico and Latin America.
“Acquiring Ultra Chem is aligned with our strategic objectives and accomplishes two goals. It expands our overall specialty mix and extends our chemical reach into Mexico,” said David Bradley, president and CEO of Nexeo Solutions. “Ultra Chem is a strong cultural fit with complementary end markets and current margins that are immediately accretive.”
The transaction, which is subject to the usual closing conditions and regulatory approvals, is expected to close during the second quarter of 2017. Nexeo said the agreement was facilitated through a proprietary deal process.
Earlier this month, Nexeo appointed Dan Smith as its new chairman, replacing Wilbur Ross who resigned as a result of his confirmation as US Secretary of Commerce. One of Ross’s key priorities is to renegotiate the NAFTA trade agreement with Mexico and Canada. In an interview with US television channel Fox News on Mar. 12, Ross said the Trump administration has yet to determine what the replacement agreement would look like. He said the department’s goal is to update the trade deal because the current version is “outdated” and has “wrong” features.
