Sweden’s Perstorp has agreed to sell its Capa caprolactone business to US specialty chemicals and materials manufacturer Ingevity for around €590 million.

The divestment is part of Perstorp’s program to focus on opportunities and future growth prospects in its polyol, oxo and feed businesses. Jan Secher, Perstorp’s president and CEO, said the sale of Capa simplifies the Perstorp group, strengthens its balance sheet and allows it to focus on future investment and innovation in attractive high-growth segments.

Capa is the global market leader for caprolactone and its derivatives such as polyols, thermoplastics, lactides and hexanediol, which are key components in adhesives, bioplastics, coatings, elastomers and resins.

The business, which has revenues of approximately €150 million and adjusted EBITDA of about €50 million, operates a production plant in Warrington, UK, and employs around 90 people.

The Warrington caprolactone plant is currently being upgraded, with the project due to be completed in the second half of 2019. Work includes installing a new peracetic still along with new reactors to permit a higher production volume and facilitate expansion and debottlenecking.

Perstorp said that during the last 10 years, Capa’s operating margins have increased by nearly 50% by investing in production and new product lines, which in turn have increased both the customer base and its geographic reach.

Commenting on the acquisition, Michael Wilson, Ingevity’s president and CEO, said: “Like our current businesses, Capa is a high value-added, specialty chemicals business driven by technology-based customer partnerships and focused on high-growth end-markets. In addition, Capa will increase Ingevity’s product and geographic diversity and offers the potential to grow in related strategically-targeted market segments.”

The transaction, which remains subject to certain regulatory approvals and other customary conditions, is expected to close late in the first quarter of 2019.

Last month, Perstorp announced plans to sell its BioProducts business, which produces biodiesel and glycerin, to a Swedish investor together with a member of the subsidiary’s management team.

In March 2017, the Swedish group agreed to sell its additives business located in Ghent, Belgium, to Synthomer for about €78 million.