Sovereign Acquires Croda’s Adhesives Business
CHICAGO – Sovereign Specialty Chemicals, Inc., announced the acquisition of the adhesives business of Croda International Plc. (U.K.) for an initial purchase price of approximately $60 million. Additional contingent consideration of up to approximately $4 million is payable in early 2001 depending on the performance of certain operations.
Croda's adhesives operations consist of three business units: North America, based in suburban Chicago; Europe, based in Newark-on-Trent, U.K.; and Brazil, based near Sao Paolo. Revenues for the business are in the range of $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. It has a strong sales force serving these markets on a direct basis, and a technology portfolio specialized in water-based and hot melt adhesives. Primary manufacturing locations are Plainfield (Illinois), Newark (U.K.) and Kappellen (Belgium).