Songwon acquires Sequent Scientific's specialty chemicals division

Korea's Songwon Industrial Group has agreed to acquire the specialty chemicals division of Sequent Scientific Ltd for an undisclosed amount. On March 13, 2014, Sequent had announced that it intention to transfer its specialty chemicals division along with all related assets and liabilities by way of slump sale to any company/entity/or any other person.
 
As a result of this transaction, Songwon gains access to Sequent’s polymer stabiliser business and production site in Panoli, Gujarat, together with the local R&D team. The parties expect the transaction to close in Q3 2014, and is subject to customary closing conditions.
 
Jongho Park, Chairman and CEO of Songwon Group, commented, “This acquisition is another milestone in Songwon's commitment to be a reliable partner to the polymer industry, strengthening our position as a leading supplier of polymer stabilisers in one of the fastest growing polymer markets. The local manufacturing presence will support Songwon's ambition to build a leading position in India while serving the specific needs of the Indian market.”
 
Park added, “The production site in Panoli gives Songwon access to a state of the art manufacturing facility to produce high value-added polymer stabilisers such as Songwon PEPQ and other specialty chemicals. Songwon is committed to invest in Panoli to develop the full potential of the site as part of its global manufacturing footprint. Besides serving the domestic market Songwon will also export these products to its global customer base. Next to the production assets Songwon is also excited to leverage the extensive experience and high level of competence of the local R&D team.”
 
Manish Gupta, CEO, Sequent Scientific Ltd, said, "This is a major step towards steering Sequent to a path of creating value for its various stake-holders. The specialty chemicals business while profitable, had become non-core in Sequent's stated vision to become a leading player in global veterinary business. The proceeds will be utilised to pare down debt and also provide growth capital in expanding the strategic intent of Sequent."