Oyak Group, a Turkish company with steel, finance and cement assets, is in talks to buy U.S.-based Galata Chemicals as it seeks to expand its plastics-additives operation, according to three people with knowledge of the matter.
Negotiations are at an advanced stage, said the people, who asked not to be identified because the process is private. A deal may value Galata at about $150 million, including debt, said one of the people.
“Oyak officially denies it is buying,” the company said in an e-mailed statement, without mentioning Galata’s name. Representatives for privately owned Galata, based in Southbury, Connecticut, didn’t return calls seeking comment.
Lazard Ltd. is advising Galata on the sale, two of the people said. Lazard declined to comment.
A deal would follow Oyak’s purchase of Austrian PVC additives maker Chemson Group last month from Buy-Out Central Europe II, and the takeover of Akdeniz Kimya in January. Oyak is seeking to broaden its client base to compete with Baerlocher of Germany, which established an operation in Turkey last year to tap growth in demand for PVC windows and pipes.
Galata, bought by Artek Surfin Chemicals and Aterian Investment Partners in 2010, makes heat stabilizers and plasticizers at plants in Taft, Louisiana, and Lampertheim, Germany. Founded in 1961, Oyak also runs Turkey’s military pension fund.
Kaneka Corp. of Japan today announced its expansion in the market for PVC modifiers, with an agreement to buy Vinuran from BASF SE. Ludwigshafen, Germany-based BASF said the business was no longer strategic as it shifts focus to acrylate-based dispersions. The companies didn’t disclose the purchase price.
Vinuran’s products help improve resistance and processing properties in transparent and opaque PVC, used in weatherproof panels, films and profiles for the construction industry.