Chemicals maker W.R. Grace & Co, which is operating under Chapter 11 bankruptcy protection, wants to make an acquisition that would "significantly" bolster its business.

The company's board started investigating a "highly confidential potential strategic transaction" last month, according to a filing with U.S. bankruptcy court.

Grace is now asking the court to seal any disclosure of the seller. The company needs the court's permission to do anything outside normal business operations, including acquisitions.

"The board determined in its business judgment that this proposed transaction would significantly enhance Grace's business plan and growth strategy in coming years," the company said in the filing.

In a statement to Reuters, W.R. Grace declined to elaborate. "If we are successful, we will announce the transaction publicly," spokesman Greg Euston said.

Grace makes catalysts used in the chemical and oil refining sectors and construction products.

Given the recent strong results and stock appreciation, it was not immediately clear why the company needs to alter its business model.
The company's first-quarter results handily beat Wall Street's expectations. Chief Financial Officer Hudson LaForce told Reuters in April that sales in W.R. Grace's construction-related businesses are the strongest they've been in three years.

The Columbia, Maryland-based company will meet with a U.S. district judge next Tuesday to discuss its exit from bankruptcy protection.

W.R. Grace has taken care of nearly all claims related to its 2001 bankruptcy, though three groups of creditors still have claims against the company.
The company initially filed due to the large number of claims against its asbestos business. In 2008 it agreed to set up a trust fund to pay victims' health claims. The trust will be set up as soon as the company exits bankruptcy.

 W.R. Grace's largest shareholders include Peninsula Capital Advisors, Fidelity, Vanguard and BlackRock Inc.