Kraton Performance Polymers buys specialty material supplier Arizona Chemical

In a bid to move into the renewable specialty chemical market, engineered polymer supplier Kraton Performance Polymers has purchased Arizona Chemical Holdings Corp., a maker of specialty chemicals derived from non-hydrocarbon, renewable raw materials.

The purchase price is US$1.37 billion.

Houston, Tex.-based Kraton is a producer of styrenic block copolymers. In a statement, Kraton president and CEO Kevin Fogarty said that the acquisition is part of his firm’s three-part strategy and that it creates new opportunities for Kraton to deepen customer relationships in core markets.

The deal is expected to close in late 2015 or early 2016.

Headquartered in Panama City, Fla., Arizona Chemical manufactures and sells high-value performance products derived from pine wood pulping co-products. The company operates a network of nine manufacturing facilities in North America and Europe, and operates science and technology centers in Almere, The Netherlands, Savannah, Ga., and Shanghai, China.

The seller of Arizona Chemical is AZC Holding Company, LLC, which is principally owned by investment funds managed by American Securities LLC.