Daily News: December 11, 2017

Barclays, GS, Others Support SK Capital Israel Chemicals Buy


SK Capital signed an agreement to acquire the fire safety and oil additives businesses of Israel Chemicals for approximately $1 billion.

The businesses, headquartered in St. Louis, have global operations. The ICL Fire Safety business is a formulator and manufacturer of fire management chemicals. Its Phos-Chek fire retardants, Class A and B foams, and water enhancing gels are chemical solutions for managing wildland, military, industrial and municipal fires and are used in partnership with fire management agencies across the globe. The ICL Oil Additives business provides phosphorus pentasulfide used in the preparation of ZDDP-based lubricant additives, in critical engine anti-wear solutions that lead to prolonged combustion engine function, as well as in pesticide and mining chemicals applications.

Aaron Davenport, a managing director of SK Capital, said, “This acquisition adds to SK Capital’s extensive experience of partnering with corporate sellers to execute carve-outs of non-core businesses and working with management to transform them into thriving, independent companies.”

The Valence Group, Rothschild and HSBC Securities (USA) acted as M&A advisors to SK Capital. Kirkland & Ellis acted as legal advisor. Committed debt financing was provided by Barclays, Goldman Sachs USA and HSBC Securities (USA).

SK Capital is a private investment firm with a focus on the specialty materials, chemicals and pharmaceuticals sectors.