JM Huber acquires CP Kelco
26th July 2004
In a, not unexpected move, the JM Huber company has bought the remaining share of CP Kelco from Lehman brothers bank. This has propelled JM Huber to a top position in the hydrocolloids world. CP Kelco, with a world leading position in xanthan and pectin and a quite respectable position in carrageenan, was formed from Copenhagen Pectin and Kelco. JM Huber already has a number one position in CMC with its Noviant division.
The purchase makes a lot of sense for Huber as the Noviant CMC division is very strong in paper, oil well drilling and other industrial applications and will be enhanced by a strong position in xanthan. Whereas a position in the pectin and carrageenan market can only help strengthen Noviant CMC sales in food markets, a market traditionally dominated by Hercules.
The statement from CP Kelco reads:
CP Kelco Announces Pending Acquisition by J.M. Huber Corporation
CHICAGO--July 26, 2004--Lehman Brothers Merchant Banking Partners II L.P. and J.M. Huber Corporation (Huber) have entered into a definitive agreement for Huber to acquire CP Kelco from Lehman Brothers. Huber currently owns a minority position in the company which it acquired from Hercules Incorporated in February 2004. Terms of the agreement were not disclosed. Lehman Brothers Inc. acted as financial advisor to the company. CP Kelco anticipates the transaction, subject to regulatory approval, will close September 30, 2004. Upon closing, it is expected that CP Kelco will become part of Huber's Engineered Materials Sector, which includes Huber Engineered Materials (HEM) and Noviant.
"I believe this news is excellent for our customers and for our company's future," says Robert B. Toth, CP Kelco's president & CEO. "Huber is very much aligned with our strategic direction and committed to growing our business. As part of this dynamic organization, we will be even better positioned to serve our customers with an increased number of functional products, greater global reach and enhanced technical capabilities."