Solenis and Kolb Distribution Ltd., a unit of KLK Kolb Group, announced that Solenis entered into a definitive agreement to acquire the latter’s Swiss-based paper process chemicals business.
Solenis is based in north Wilmington.
The deal includes a long-term supply agreement, in which the KLK Kolb Group will manufacture paper process chemicals exclusively for Solenis.
KLK Kolb Group offers a portfolio of paper process chemicals, including deposit control, cleaning, and foam control agents primarily for the EMEA pulp and paper markets. Its wide range of manufacturing process technologies, including alkoxylation, esterification, and dispersion, enables KLK Kolb Group to offer a broad range of products, as well as offer customized solutions for its customers.
The transaction is expected to be completed before the end of the first quarter 2023, subject to regulatory approval and customary closing conditions.
Solenis and KLK Kolb Group will continue to operate as independent companies until the transaction is complete.
“Kolb’s outstanding reputation is built on their customer-centric and high-quality service business model. We are excited to welcome the Kolb team and their excellent product portfolio as we continue to strive toward being the best-in-class provider of paper process chemicals,” said John Panichella, CEO of Solenis.
“Establishing a long-term supply agreement will provide customers throughout EMEA assurance of supply for cost-effective and high-quality products,” said Jonas Boström, vice president and general manager, EMEA Consumer Solutions, Solenis. “The added range of process technologies and product flexibility ensures that we can meet even more application-specific product needs.”
The Kolb transaction marks the fourth add-on acquisition since Platinum Equity acquired Solenis last year.
“Solenis is proving to be an outstanding platform for growth, both organically and through strategic M&A,” said Platinum Equity Partner Jacob Kotzubei. “We will continue working with John and the management team to find more opportunities to help the company expand.”
Solenis got its start by acquiring chemical operations of Ashland, formerly Hercules Incorporated. Hercules-Ashland was a major producer of chemicals for the paper industry.
The company, funded by private equity, has continued to make acquisitions worldwide and has annual sales of $500 million.
Owner Platinum Equity paid $5.25 billion to acquire Solenis from another private equity firm, Clayton, Dubilier & Rice.
Delaware issued a nearly $4 million grant to keep Solenis’ headquarters in Delaware.