SI Group recently announced an agreement to sell the majority of its global industrial resin businesses and its Brazilian specialty business to ASK Chemicals, a portfolio company of private equity firm Rhône Group, LLC. The transaction includes SI Group’s industrial resins products and associated manufacturing sites in Rio Claro, Brazil; Ranjangaon, India; and Johannesburg and Durban, South Africa. Global licensed technology and multiple tolling agreements are included as well. The deal is expected to close later this year.
“While the industrial resins business has long been a part of the SI Group portfolio, the decision to sell this portion of the business affords us the opportunity to reshape our portfolio,” said David Bradley, president and CEO of SI Group. “The sale of this business provides proprietary technology and know-how in the industrial resins business to ASK while realigning our focus around performance additives.”
SI Group reports that it will carve out related businesses at these four sites, including the manufacture of global rubber and adhesives and oilfield products, as well as foundry products in Brazil. The company will also operate tolling agreements with ASK.