Elementis plc announced that it has agreed, through its wholly owned subsidiary Elementis Holdings Limited, to purchase Watercryl Quimica Ltda, a Brazilian coatings additives company, for a cash consideration of $24 million.
Watercryl was established in 1993 and is a leading supplier of additives to the Brazilian coatings industry, with manufacturing and technical facilities based in Palmital, São Paulo. The acquisition of Watercryl will significantly increase the company’s presence in Latin America and provide a platform for its specialty products business to accelerate growth in the region.
For the 12 months ended 31 May 2012 Watercryl reported, on an unaudited basis, sales of $9.3 million and EBITDA of $2.3 million. Further growth will be driven by combining the market positions, technical capabilities and product portfolios of the two businesses, to expand sales of Watercryl products beyond Brazil and to accelerate the growth of Elementis products in Brazil.
The transaction is expected to close during the second half of 2012.