Momentive Specialty Chemicals Inc. announced that it has signed a definitive agreement to sell its global Ink & Adhesive Resins (IAR) business to Harima Chemicals, Inc., a leading producer of pine-based products.
Terms of the agreement were not disclosed. The transaction is subject to customary conditions including governmental reviews. Closing is anticipated to occur in the first quarter of 2011.
With 2009 annual revenues of $278 million, IAR is one of the world’s leading suppliers of resins and additives to aroma chemical, synthetic rubber and specialty coating industries. Harima will purchase the complete business including 11 manufacturing facilities on five continents and the IAR global product portfolio. It is anticipated that the IAR management team and approximately 650 global associates will join Harima at closing.
“This business, much of which is based on pine chemicals technology, is a great fit with our existing company and will further extend our global presence in this sector,” said Yoshihiro Hasegawa, president of Harima. “This investment highlights our continuing focus on environmentally suitable technologies and products.”
“Strategically, this is a great fit,” said Brad Crocker, vice president and general manager of IAR. “This combination will create one of the world’s largest pine chemical companies, giving improved access to key raw materials, an enhanced operational footprint and a broader technology bas eto maximize customer value.”