The investment will give Solvay’s Novecare business unit greater access to one of the world’s largest personal care and agrochemicals markets and which are growing at a double-digit pace. In addition, it strengthens its commercial network, closeness to customers and innovation pipeline.
The transaction includes ERCA’s local specialty chemical assets and its portfolio of agrochemicals and home & personal care products. Located at Itatiba city in the state of Sao Paulo, Brazil, these new industrial assets will give Solvay the scalability to expand further to meet growing demand. Novecare will deploy its leading position in several technology platforms, especially in developing and providing quats, which are the building blocks for an array of Novecare specialty chemicals and surfactants. In addition, Solvay will enter into a partnership with ERCA to manufacture their products for their construction and textile market segments.
“The acquisition of these specialty chemical assets represents an important step for Novecare to grow in Brazil’s dynamic market, expand our technology and product portfolio, increase production capacity and provide global innovations to meet the immediate demand of our customers. With a competitive industrial footprint, we are able to help our customers capture business opportunities and develop new products and solutions to meet their growth ambitions,” said Emmanuel Butstraen, president of Solvay Novecare.
The completion of the transaction is subject to customary closing conditions, including Brazilian anti-trust clearance.