FMC Corporation has signed an agreement to sell its Peroxygens business to One Equity Partners for $200 million.
FMC Peroxygens is North America’s largest producer of persulfate and peracetic acid chemicals which are used as bleachers and oxidizers in polymer initiation and polymerization, electronic circuitry manufacturing and pool treatment. FMC Peroxygens manufactures the entire range of sodium, ammonium and potassium persulfates at its facility in Tonawanda, NY. Peracetic acid product lines, also manufactured in Tonawanda, are primarily used in chemical synthesis and biocidal applications.
In April 2013, FMC simplified its organizational structure to focus on three core business segments that better reflect the markets where the company participates and leads. FMC Peroxygens, although a successful business, is not a strategic fit with the company’s growth platforms. The sale of the Peroxygens business is expected to close in the first quarter of 2014.
“We’re pleased to sell our Peroxygens business to a successful and respected investment firm, One Equity Partners,” said Pierre Brondeau, president, CEO and chairman of FMC. “This transaction will help unlock the growth potential of the Peroxygens business with focused attention and investment, while allowing FMC to direct our resources to core segments in crop protection, health and nutrition technologies, alkali chemicals and lithium.”
One Equity Partners is the private investment arm of JPMorgan Chase and manages approximately $14 billion in commitments and investments solely for the bank. Founded in 2001, One Equity Partners has 39 investment professionals in New York, Chicago, Frankfurt, Vienna, Hong Kong, and Sao Paulo (www.oneequity.com).
FMC is a diversified chemical company serving agricultural, industrial, environmental, and consumer markets. In 2012, FMC had annual sales of approximately $3.4 billion. The company employs approximately 6,000 people throughout the world, and operates its businesses in three segments: FMC Agricultural Solutions, FMC Health and Nutrition, and FMC Minerals. FMC is headquartered in Philadelphia (www.FMC.com).
Macquarie Capital is serving as Sole Lead Arranger on the financing for the transaction.
© 2013 PEPD • Private Equity’s Leading News Magazine • 12-13-13
