Innospec, an international specialty chemicals company, completed the acquisition of the European Differentiated Surfactants business from Huntsman in line with the agreement announced on August 3, 2016.
The business is currently managed from Belgium, and has manufacturing assets in France, Italy and Spain. With sales revenues of around $230 million, the business employs approximately 430 people. Innospec will integrate the acquisition into its Performance Chemicals business.
To support the acquisition, Innospec entered into a third amendment and restatement agreement to its credit facility agreement dated December 14, 2011.
Lloyds Bank acted as agent and security agent, Barclays, Credit Suisse, The Royal Bank of Scotland, Lloyds Bank, Wells Fargo and U.S. Bank were mandated lead arrangers. Barclays served as document coordinator.
The agreement retains the $200 million revolving credit facility available to the company and adds a term loan facility of $110 million. The termination date of the revolving facility remains November 6, 2020. The term loan has an $11 million repayment installment due December 28, 2017, a $16.5 million installment due December 28, 2018 and a $22 million installment due December 28, 2019, with the outstanding balance due on November 6, 2020.
The proceeds of the term loan are to be used in connection with company’s obligations under the acquisition agreement. The obligations of the company under the agreement are secured and guaranteed by certain subsidiaries of the company.
Patrick S. Williams, president and CEO of Innospec, said, “We are very pleased that the acquisition has been completed, and in a relatively short time for such a complex project. This not only significantly enhances our Personal & Home Care business, but also adds to our Oilfield Services presence in Europe. It also provides us with a small presence in new markets to Innospec including Agriculture, Mining and Construction.”
Bruce McDonald, president of Performance Chemicals at Innospec added, “We are delighted to welcome the new employees to Innospec, and we look forward to working with our customers and offering a much wider range of products and technologies.”