Albemarle is selling its polyolefin catalysts and components business to W. R. Grace & Co. in a cash deal valued at $416 million.
Under the terms of a deal, W. R. Grace—a Columbia, Maryland-based supplier of catalysts and engineered materials—will assume the lease and operations at the Product Development Center in Baton Rouge and the operations at the company’s Yeosu, South Korea site, according to a news release. The curatives and organometallics portions of the Performance Catalysts Solutions business will remain with Albemarle.
The companies have signed a definitive agreement for the sale of the polyolefin catalysts and components business. The transaction is subject to regulatory approvals and is expected to close in the first quarter of 2018.
W.R. Grace says the acquisition strengthens its catalysts technology portfolio, commercial relationships, and manufacturing network.
Albemarle Chairman, President and CEO Luke Kissam says the sale of the portion of the Performance Catalysts Solutions business illustrates Albemarle’s commitment to its shareholders.
The sale is Albemarle’s latest move to downsize is Baton Rouge operations. In August, the company announced that it would close its office in the Chase South Tower in downtown and relocate most of the positions to its facility in Kings Mountain, North Carolina, or its Charlotte headquarters.
Approximately 150 Albemarle employees will join W.R. Grace after the transaction closes by the end of the first quarter, Susan Richardson, a company spokesperson, says. Albemarle will continue to have employees in Baton Rouge to support corporate functions and the company’s Bromine business.
Shares of Albemarle have rallied 18.1% in the past six months, outperforming the industry’s 13.9% growth, according to Zacks.com, an equity research site.
