Ferro has entered into an agreement with Synthomer PLC to acquire 100% of the shares in Revertex, which, in turn, holds 100% shares in Synthomer and 50% of the share-holding in Arkem.
This transaction is subject to the approval of the Competition Commission of SA and once approved will be effective from 1 January 2016. Ferro’s surface coatings strategy, initiated in 2014 has been further enhanced as a result of the pending acquisition of Revertex SA, which allows the company’s entry into the South African water-based dispersants and emulsions markets as well as other niche markets in which, Synthomer and Arkem operates.
Ferro has indicated that it will rename these business ‘in time’ in keeping with the Ferro name and brand. The technology and continued distribution of Synthomer products will remain unchanged. Ferro SA is a wholly owned South African company, which defines and differentiates its various businesses with the following credo: ‘Technology based performance materials company’
Synthomer South Africa has a proud history and an excellent reputation as a dispersants company with an exemplary record of delivering high-quality products to the South African market. Synthomer is a perfect fit both with the Ferro credo and Ferro’s business philosophy.
In August 2014, Ferro acquired 100% of Arkema Resins since renamed Ferro Coating Resins, which was the first stage of the company’s strategy to enter the South African surface coatings market. Ferro Coating Resins operates in the solvent-based coatings market and is supported by a Technical Assistance and Distribution Agreement with Arkema in France.
Revertex Chemicals and Arkema Resins (previously Cray Valley) are leaders in their respective fields, both the first companies ever to produce and market dispersants (Revertex) and solvent-based alkyds (Cray Valley) in South Africa.
“We are very pleased that, once the necessary approvals have been obtained, these two businesses will compliment each other and enhance the surface coating strategy of the Ferro Group,” said Ian Forbes, Group CEO.
“The staff of Synthomer SA and Arkem will remain unchanged and we look forward to welcoming them into the Ferro Group once the necessary regulatory approvals have been secured,” concluded Forbes.