Wednesday 28th September 2011
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Specialty chemicals maker Nuplex Industries, has paid A$23.5 million to buy rival Acquos Pty’s Masterbatch unit, its second Australian acquisition in three months.
The purchase, which was flagged last month, has been cleared by the Australian Competition & Consumer Commission and will be paid for through Nuplex’s existing debt facilities.
The company says the price was five times the business’s earnings before interest, tax, depreciation and amortisation, and will add to earnings in the 2012 financial year.
Acquos Masterbatch, one of Australia’s biggest manufacturers of concentrated pigments and additive masterbatches for the plastics industry, met Nuplex’s “bolt-on acquisition” strategy, chief executive Emery Severin said in a statement.
The purchase is Nuplex’s second in the past three months after it teamed up with RPC Technologies to buy Australia’s glass reinforced plastic pipes maker Fibrelogic Pipe Systems for A$26 million in June.
Privately owned Acquos bought the Masterbatch group in 2006 from Ciba Speciality Chemicals, and later purchased Clariant’s Australian masterbatch business.
Nuplex shares fell 2% to $2.89 in trading today as the manufacturer pays an 11 cents per share dividend to shareholders today.
The stock has dropped 18% this year, and is rated an average ‘outperform’ by seven analysts’ recommendations compiled by Reuters.
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