The adhesives business of Croda, which sells a range of products into the timber and wood based panels industries, has been acquired by Sovereign Specialty Chemicals of the US.
Sovereign has paid an initial consideration of US$60m for the Croda operation, which has manufacturing operations in Newark in the UK, the US and Belgium.
A further US$4m will be payable next year, depending on performance. Sovereign chief executive Robert Covalt said the acquisition gave the company an ‘international platform to become a world leader in adhesives, sealants and coatings’.
Croda’s products for the timber sector include hot melts for edgebanding, cross-linking polyurethenes, flat laminating and foil wrap, and one- and two-component membrane press adhesives.
