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Syrgis sells Performance Initiators

Two businesses remain after divestiture

Syrgis Performance Products, a diversified group of fine and speciality chemicals manufacturers that is based in Cincinnati, has sold its Syrgis Performance Initiators (SPI) business to United Initiators, another US-based firm that is specialised in the field. Financial terms were not disclosed.

SPI has manufacturing sites in Helena, Arkansas, and Köpmanholmen in Sweden, plus a trading operation in Shanghai, which generated net sales of about €40 million last year. It makes tailored formulations of methyl ethyl ketone (MEK) peroxides in North America and Europe and benzoyl peroxides in North America under the brand names Norox, Andonox, Benox and Superox. Both are organic peroxide initiators used in the production of reinforced fibreglass composite materials.

Syrgis, which is owned by Edgewater Capital Partners is the market leader in MEK peroxides in North America and third in the world in organic peroxides for plastics and reinforced thermoset composites.It cquired the business from Norac in 2007 and subsequently renamed it SPI. In September 2010, SPI opened a new stand-alone laboratory at Helena. This includes a separate remote-controlled reactor facility for R&D into new organic peroxides and the development of innovative manufacturing processes.

United Initiators, which is itself owned by Vision Capital and Speyside Equity, said that acquiring SPI will enable it to expand its product range and geographic reach, adding to its own strength in persulfates. The combined firm will have sales of about €200 million/year. Syrgis CEO Andy Harris commented that the “divestiture creates value for the industry and the investors of Syrgis”.

Syrgis has two businesses left, having sold iodine derivatives producer H&S Chemical to Iofina Chemical in 2009. Arkansas-based Syrgis Performance Specialties, the former Lycus, makes benzophenone UV light absorbers under the name Maxgard for use in plastics, coatings, adhesives and personal care, while Syrgis Performance Chemicals or PChem, supplies corrosion and scale inhibitors, chemical scavengers, demulsifiers, defoamers and other speciality chemicals for oil and gas applications in Houston.