Under the terms of the agreement, Arkema would acquire, via its subsidiary Coatex, the Araçariguama production site on the outskirts of Saõ Paulo. The new entity, which will therefore comprise Coatex's existing sales in Brazil and those from the new site, will generate $20 million in sales.
Coatex and Arkema would provide their know-how for the manufacture of resins and specialty emulsions, which are used in wide-ranging industries, including mineral processing, paint, adhesives, paper, construction, water treatment, and cosmetics.
The Araçariguama facility was built in 2007. The production plants would gradually be developed to manufacture without delay Arkema's and Coatex's full range of rheology additives and waterborne emulsions, and would offer great development opportunities for the Araçariguama site thanks to the Arkema group's know-how and technologies. Resicryl would refocus its activity on the distribution and production of a limited range of coatings and latex.
"The Araçariguama site is ideally placed to fulfil the expectations of both our existing and our future customers. This is a first major step that will allow Arkema and its subsidiary Coatex to draw on the strong growth of Brazil and Latin America without delay," said Alain Mari, chairman of Coatex.
The deal should be closed in the second half of 2012.