Syrgis Performance Products has acquired the organic peroxides business of Norac, Inc.
Syrgis Performance Products formally announced today the acquisition of the organic peroxides business from Norac, Inc., a worldwide specialty chemical company that brings more than $50 million in annual revenue to the Syrgis group. Lincoln International provided a fairness opinion to Syrgis in connection with the transaction.
In addition to manufacturing and distribution facilities in Sweden and Helena, Ark., Syrgis acquires the considerable technical, sales, and manufacturing staff, support and services with the purchase. “Norac is a great cultural fit with us. As with all our companies, Norac will remain pure in what it does, while preserving its entrepreneurial spirit, high-quality products, exceptional customer service and technical support,” said Syrgis Performance Products CEO Andy Harris. “Syrgis’ strategy is to invest and grow with our businesses, allowing them to be autonomous and build on their strengths, while supported with significant financial backing, consolidated R&D and top-tier marketing.”
A leader in its respective markets, the Norac business unit is the number one producer of methyl ethyl ketone peroxides in North America, and ranked third in the world in organic peroxides for plastics and reinforced thermoset composites. A family-run business founded in 1953, the manufacturer produces chemicals that, when used in the making of reinforced and cast polymers, helps them set at room temperature while enhancing their durability. Ultimately, the organic peroxide formulations, like many Syrgis products, find their way into a wide range of consumer and industrial goods including showers, boats, plastic pipes, wind energy turbine blades, truck bed liners and mine bolts. The market for composites with this kind of versatility, ambient temperature curing, and considerable durability exhibits sustained growth.
Benny Fahrman, Managing Director, Europe, sees the acquisition as a classic win-win for both companies. “Syrgis will help further the organic peroxide business on a global basis. Our relationship will give us the ability to strengthen opportunities worldwide. We see our business moving to servicing and supporting larger, more global customers. We look forward to working closely with Syrgis to create a cohesive global presence,” he said.
The purchase of the Norac business unit is consistent with Syrgis’ strategy of pursuing niche market leaders in the specialty and performance chemical segments. Harris views Norac’s consistent track record of producing quality products combined with a world-leading reputation for exceptional customer application support as considerable assets.
Intent on preserving the expertise, custom application know-how and valuable relationships within Norac and its business network, Syrgis has no layoffs or reorganization scheduled.
“We’re building a family of entrepreneurs focused on great customer service with niche technical expertise for the best overall customer value. Syrgis offers a flexible business environment that nurtures companies such as Norac, so they can grow beyond their potential. “Through this transition, it’s business as usual, with minimal distractions to the current organization, processes and business systems. We are committed to maintaining our unique technical differentiation and focus on the customer a move that separates us from most competitors,” Harris said. With the acquisition of the organic peroxides line comes an extensive and seasoned distribution network comprised of leading companies such as Composites 1, North American Composites, and Ashland Distribution.
“Syrgis’ philosophy involves a solid commitment to its distribution network, and we consider that a strong positive as Norac has built great relationships with top distributors and leading resin suppliers throughout the world,” said Douglas Hubbard, Business Manager for North America. “The Syrgis group will allow us to further expand and share our distribution network across the globe, bringing even more growth potential.”
About Syrgis Performance Products
Syrgis Performance Products is an international diversified group of fine and specialty chemical manufacturers. Headquartered in Covington, Ky., Syrgis is a suite of companies that includes Lycus, Ltd., H&S Chemical Co., Inc., and P Chem, Inc. as well as newly acquired Syrgis Performance Initiators, Inc. all worldwide leaders in their respective niche markets today. Syrgis companies deliver high-quality products that meet the exacting standards of leading chemical solution providers in the agriculture, composites, cosmetic, electronics, fish and wildlife, mining, oil and gas, paints and coatings, pharmaceutical, plastics, semiconductor, and renewable energy industries. With strong backing from Cleveland Ohio-based Edgewater Capital Partners, Syrgis is dedicated to delivering the high-performance products its customers need, supported by exceptional customer service and technical application expertise. To learn more, please visit www.syrgis.com.
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