Kemira to Buy 3F Chimica for $111 Million for Oil Clients

Kemira Oyj (KRA1V) agreed to acquire privately owned 3F Chimica SpA of Italy for 85 million euros ($111 million) to expand its offering of additives for industries spanning oil drilling to wastewater treatment.

3F, which makes specialist polymers, is forecast to generate about 75 million euros in sales this year, Helsinki-based Kemira said today in a statement. The deal is expected to close in the fourth quarter.

The acquisition is part of Chief Executive Officer Wolfgang Buechele’s transformation of Kemira into a maker of higher-margin additives and products needed to extract minerals and resources. The company is in the process of finding a buyer for its ChemSolutions division, which is focusing on generating cash for the parent.

Polymers “are highly synergistic with Kemira’s other differentiated process chemicals,” and sales of the products are likely to exceed the industry average, Randy Owens, head of the Finnish company’s oil and mining units as well as the North American operations, said in the statement. “Besides the strong strategic fit, the transaction is expected to result in substantial synergies through raw material, logistics and fixed-cost savings.”

Kemira is acquiring two Italian manufacturing sites, in San Giorgio and in 3F’s headquarters city of Sandrigo, and one in Aberdeen, Mississippi. The Finnish company will also gain 3F’s supply of intermediate ingredients such as bioacrylamide and cationic monomers, it said.

No investment banks were used in the deal. Deloitte provided transaction services to Kemira. Legal advisers were Labruna Mazziotti Segni of Italy, and Bingham McCutchen LLP of the U.S.

To contact the reporter on this story: Andrew Noel in London at anoel@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

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