SWEDEN’S PERSTORP SPRINGS AHEAD

Abstract

THE MANAGERS OF PERSTORP have been given a mission by the firm’s private equity owners: grow, and grow quickly, in a few chosen segments in the global specialty chemicals industry. And that is precisely what is happening. The Swedish company has embarked on a flurry of acquisitions to beef up a business portfolio that has polyol chemistry at its core. The firm’s latest deal, announced in mid-March, is also its biggest: intertwined agreements to take over Rhodia’s line of aliphatic isocyanates and LyondellBasell’s business in aromatic isocyanates. Aliphatic and aromatic isocyanates are reacted with polyols to produce industrial paint ingredients and flexible foams, respectively. The purchase includes plants in France and Texas and will add $460 million to Perstorp’s 2007 sales of about $1.27 billion. In February, Perstorp wrapped up its purchase of Solvay’s caprolactones business for nearly $310 million. The acquisition covered a plant in Warrington, England, a business with 2006 sales of about ...