Sovereign acquires Croda's adhesives business
Croda's adhesives unit consists of regional business units in North America, Europe, and Brazil. It has a strong direct sales force, and a technology portfolio that includes water-based and hot melt adhesives. It operates manufacturing sites in Plainfield, IL; Newark, UK; and Kapellen, Belgium.
The business has sales of approximately $60 million annually, with a strong emphasis in packaging and converting markets. Croda's adhesives business is a leading supplier for cold seal, flexible packaging, bookbinding, and case/carton sealing.
"The acquisition of Croda's adhesives business represents a true milestone for Sovereign," says company chairman/CEO Robert Covalt. "With the acquisition of this business, we not only strengthen our leadership position in North America, we also gain an international platform in our drive to become a world leader in adhesives, sealants, and coatings."
The purchase is the company's second major transaction in the past month. On September 13, it announced an agreement to purchase Imperial Adhesives, Inc., from NS Group Inc. for approximately $27 million. Imperial, which had $44 million in sales for the fiscal year ending September 25, 1999, has a strong distribution.
Both acquisitions have come since AEA Investors, Inc., purchased a 75% share of Sovereign Specialty Chemicals in November 1999. AEA is an experienced international private equity investment firms whose investors include former and current CEOs of major multinational corporations, family groups, endowment funds, and institutions from around the world.
Sovereign itself markets specialty adhesives, sealants, and coatings used in industrial and commercial applications. Robert Covalt and a group of private investors, including Waud Capital Partners, founded the company in 1996.
Edited by Alan S. Brown
Managing Editor, Chemical Online
abrown@vertical.net
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