Kraton Performance Polymers, a global producer of highly-engineered polymers, announced it has entered into a definitive agreement to acquire all of the capital stock of privately held Arizona Chemical Holdings for a cash purchase price of $1.37 billion. Arizona Chemical is a global producer of high-value performance products and specialty chemicals derived from non-hydrocarbon, renewable raw materials.

Kraton said it will finance the purchase price through debt facilities that have been committed by Credit Suisse Securities (USA), Nomura Securities International and Deutsche Bank Securities. The seller of Arizona Chemical is AZC Holding Company, which is principally owned by investment funds managed by American Securities.

Financial advisors for Kraton are Lazard, J.P. Morgan Securities and Nomura Securities International and legal advisors for Kraton are Baker Botts and Cleary Gottlieb Steen & Hamilton.

Financial advisors for the sellers are Credit Suisse and Morgan Stanley and the legal advisor for the sellers is Weil, Gotshal & Manges.

Arizona Chemical’s end use market exposure is highly complementary with that of Kraton, particularly in markets such as adhesives, roads and construction, coatings and oilfield chemicals.