Sector News

Vertellus Acquires Pentagon Chemicals

November 3, 2014
Chemical Value Chain
Vertellus, the world’s leading producer of pyridine and pyridine derivative chemicals, today announced that it has purchased Pentagon Chemicals, a leading manufacturer of fine and specialty chemicals used in the life sciences industry. The acquisition significantly expands Vertellus’ manufacturing presence in the agrochemical and pharmaceutical sectors and positions Vertellus to complement its current chemistries with U.K.-based Pentagon’s strong capabilities in phosgenation, chlorination and sodium dispersion, among others.
 
The transaction is expected to boost earnings of Vertellus Specialty Materials division approximately 20 percent, contributing to an approximate 13 percent increase in total company revenue. The acquisition of Pentagon is part of Vertellus’ vision to expand its Specialty Materials footprint in the life science sector through both organic growth and strategic acquisitions. Revenues from life science applications represent more than 65 percent of the company’s total revenue, and Vertellus expects the acquisition will significantly increase its agriculture chemical and pharmaceutical business.
 
According to Vertellus CEO Rich Preziotti, the company was impressed with Pentagon’s expertise in producing high value reagents used to produce complex molecules and Pentagon’s market leadership as a supplier of maleic anhydride derivatives that complement Vertellus’ ASA business. He added that the complementary chemical expertise between the two businesses also aligns with their manufacturing locations. “Beyond the chemistry fit, Pentagon operates two high quality U.K. manufacturing sites which build upon Vertellus’ position in the northern U.K. Having three sites in close proximity to each other will enable us to build a robust infrastructure to support additional growth,” Preziotti said.
 
Integration of the two business units is underway and company leaders will publicly introduce the partnership during the Chemical Industries Association annual dinner in London, on November 20. “Given the complementary capabilities of Vertellus and Pentagon, we look forward to supplying life science companies with a high quality supply of critical intermediates delivered by a team who understands both the complex chemistries and the business markets in which they are used,” Preziotti said.
 
Source: Vertellus

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