Specialty chemicals company W.R. Grace & Co. has struck a deal to purchase Albemarle Corporation’s Fine Chemistry Services (FCS) business for $570 million, the firm announced Thursday. The proposed transaction would enable Grace to bolster its pharma portfolio.
“Combining these businesses strengthens our innovation and manufacturing capabilities and gives us scale that will further strengthen our customer value proposition and drive meaningful financial results for our shareholders,” Hudson La Force, president and chief executive officer of Grace, said in a release. “FCS’ impressive talent, customer-focused culture, track record of innovation and commitment to operating excellence align well with the Grace Value Model.”
FSC’ pharma portfolio includes APIs, pharmaceutical intermediates, formulation excipients and drug delivery, and chromatographic resins. The business has a range of manufacturing assets from the pre-GMP clinical stage through commercial production.
“With this investment, Grace will have a more comprehensive and differentiated offering from early development through commercialization with full analytical, regulatory and manufacturing capabilities,” the company’s release said.
Albemarle said in a separate release that its divestiture of the business is part of ongoing efforts to focus the company on growth-oriented segments.
“Fine Chemistry Services is a profitable business, and we have confidence that Grace is positioned to help it thrive,” Albemarle CEO Kent Masters said in a statement.
The sale is expected to close in the second quarter of this year following the completion of certain regulatory approvals and closing conditions.