Baker Hughes’ speciality polymers business is involved in the production of speciality low molecular weight olefin polymers
Private equity company SK Capital Partners has entered into an agreement to purchase the speciality polymers business from Baker Hughes for an undisclosed sum.
With manufacturing operations in Barnsdall of Oklahoma, the speciality polymers business is engaged in the production of speciality low molecular weight olefin polymers.
The divested business offers several differentiated functional polymers
The company’s product portfolio is comprised of a range of differentiated functional polymers, as well as premium and high melting point polyethylene waxes.
SK Capital managing director Mario Toukan said: “The speciality polymers business is a pioneer in the development of specialised polymerisation technologies.
“We see tremendous opportunity for growth by further developing functional, solutions-oriented products that solve problems and create significant value for customers.”
SK Capital and Baker Hughes are said to work together to execute a seamless transaction plan to continue to better serve the speciality polymers division’s customer base. The deal is expected to be completed in the second half of this year.
Morgan, Lewis & Bockius served as legal counsel to SK Capital, while committed debt financing was offered by KeyBanc Capital Markets.
Evercore served as a financial advisor, while King & Spalding acted as legal counsel to Baker Hughes.
SK Capital managing director Jonathan Borell said: “SK has extensive corporate carveout expertise and we look forward to partnering with management to transform the business into a world-class independent speciality chemical company with an intense focus on operational excellence.”
With a focus on the speciality materials, chemicals, and pharmaceutical sectors, SK Capital’s portfolio of businesses holds the capacity to generate revenues more than $9bn per annum.
The company’s businesses, which operate 86 plants in 24 countries, employs over 10,000 people across the world.
In March this year, Austria-based OMV signed an agreement to purchase an additional 39% stake in polyolefin plastic materials supplier Borealis from Mubadala Investment for around $4.68bn.