Taminco To Buy Formic Acid Business Of Kemira Oyj In $190 Mln Deal - Quick Facts

(RTTNews) - Taminco Corp. (TAM), a producer of alkylamines and alkylamine derivatives, announced Monday that it agreed to acquire the formic acid business of Kemira Oyj for a transaction value of about 140 million euros or $190 million.

The transaction has been unanimously approved by the boards of directors of both companies. It is expected to close in the first quarter of 2014 and is subject to the fulfillment of customary closing conditions.

The company noted that the formic acid business serves a number of end-markets driven by key global "mega-trends", such as animal nutrition, water treatment and energy.

Upon closing, Taminco will acquire a business with EBITDA of approximately 23 million euros or $32 million, a manufacturing facility for formic acid and derivatives located in Oulu, Finland, and approximately 160 employees across Finland, the Netherlands, Germany, China, the U.S. and Brazil.

Taminco noted that its entry into the formic acid market continues its implementation of a long term strategy of accretive investment in niche businesses with strong outlooks, attractive end-markets, and high levels of similarities with Taminco's core competencies.

Taminco stated that the transaction will be financed through a combination of cash on hand and committed financing. The transaction will generate significant value for both Taminco and Kemira, including the agreement by the parties to enter into several long term supply and service agreements following the closing.