US buyout group SK Capital Partners has opted not to sell Archroma, announcing it has reinvested in the Swiss producer of textile chemicals, paper specialties and emulsions, which was  carved out from specialty chemicals producer Clariant and sold to the New York-based investor in 2013.

The private equity investor put Archroma up for sale in January of this year, reportedly seeking a buyer for either a majority or minority stake. It is unclear what led to the change of plans.

Aaron Davenport, SK Capital’s managing director, commented: “Our new equity and recapitalized balance sheet will provide the financial and operational flexibility to continue building Archroma’s competitiveness and market position.”

SK Capital said that, under its ownership, Archroma has revitalized its performance by carving out three non-core divisions and establishing them as independent and integrated companies. The investor added that the company is now in a strong position to execute a number of attractive acquisition opportunities that leverage its existing platform and technology base.

Archroma bought BASF’s textile chemicals business in July 2015 and a 49% stake in textile dyes and chemicals manufacturer M. Dohmen in May 2014.

In separate news, SK Capital has signed a definitive agreement to acquire Perrigo API, the active pharmaceutical ingredients (API) business of US-based Perrigo. The company is a leading developer and manufacturer of generic APIs and finished dose forms (FDF) with operations mainly located in Israel and supporting functions in the US and India.

As part of the transaction, the parties will enter into a long-term supply agreement for Perrigo API to supply multiple existing commercial and pipeline APIs to its former owner.

A new trade name will be selected and announced for the business before the deal closes, expected to take place during this year’s fourth quarter.

SK Capital said the acquisition complements its other portfolio companies operating in the API and FDF value chain, including Noramco, Tasmanian Alkaloids and Halo Pharmaceutical, all of which will continue to operate independently after the transaction closes.