The transaction is expected to close within the third quarter of 2016, subject to customary closing conditions.
Commenting on the transaction, Terence Yu, Group chief executive officer, Cathay Industries, said, “The acquisition of Hoover Color further strengthens our color pigments business as well as enhancing our capabilities. As market leader in natural occurring Umbers and unique eco-friendly Transparent Iron Oxides, Hoover Color brings a century of customer focus to the Cathay Industries Group”.
“Merging our two companies will complement Cathay’s focus on innovation, sustainability, and position us as a leading supplier of performance pigments with a unique offering for the paints and coatings industry,” said Yu.
Charles Hoover, president of Hoover Color Corporation said “Over the last 25 years, Cathay Industries has led the restructuring of the iron oxide industry through innovative technology, and this partnership cements the relationship our two companies have developed over the last two decades. All of us at Hoover Color look forward to exciting times ahead for the combined businesses.”
The transaction will not affect Hoover Color’s existing product range and supply will continue seamlessly.
Hoover will join the executive team at Cathay Industries and continue in his role as president of the Hoover Color newly formed division of Cathay Industries.