W. R. Grace & Co. (NYSE: GRA), a leading global supplier of catalysts and other products for petroleum refiners, today announced it will purchase Synthetech Inc., manufacturer of fine chemicals specializing in organic synthesis, biocatalysis and chiral technologies.
The acquisition is expected to equip Grace with the needed capacity to manufacture specialty single-site and polypropylene catalysts used to produce plastics.
“Synthetech gives us immediate production capacity for specialty single-site and polypropylene catalysts, which significantly enhances our ability to supply our large global customers with these specialized catalysts. The acquisition eliminates the need for investing in a grass-roots facility,” Greg Poling, vice president of W. R. Grace & Co. and president of Grace Davison stated in the press release.
In addition, Synthetech’s fine chemical expertise expands Grace’s offerings from discovery sciences to include the pharmaceutical sector.
“Synthetech’s established relationships with pharmaceutical companies and their expertise in the development-stage of patented drugs also will broaden our portfolio of products and services in our discovery sciences business,” Poling stated.
Dr. Gregory R. Hahn, Synthetech’s president and CEO, praised the work of the company’s employees and noted that he expects the deal to benefit shareholders, employees and customers.
“The employees at Synthetech have worked hard over the past four years to successfully turn around the company. With the Grace agreement, we believe we have created additional value for all Synthetech stakeholders, including employees, customers, and particularly shareholders. We look forward to building a new future as part of Grace,” Dr. Hahn stated.
Grace will pay approximately $19.2 million, excluding Synthetech’s unpaid debt and transaction costs at closing. The merger has been approved by the boards of directors of both companies, but is subject to approval by Synthetech’s shareholders and the U.S. Bankruptcy Court and other closing conditions. The deal is expected to close in the fourth quarter of 2010.
Shares of Synthetech soared nearly 94% to $0.93 mid-day, while Grace shares slipped 1% to $27.10.
For more information on the companies, visit their websites at www.grace.com and www.synthetech.com.
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