Sector News

Vertellus buys fine chemical maker Pentagon Chemicals

November 5, 2014
Chemical Value Chain
The US-base Vertellus, one of the leading global producers of pyridine and pyridine derivative chemicals, has purchased Pentagon Chemicals (Holdings) UK Ltd, 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 UK-based Pentagon’s strong capabilities in phosgenation, chlorination, Grignard and sodium dispersion, among others.
 
The transaction is expected to boost earnings of Vertellus Specialty Materials division approximately 20 percent, contributing to a 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 Rich Preziotti, CEO, Vertellus, the company was impressed with Pentagon’s expertise in producing high value reagents used to produce complex intermediate and active molecules combined with Pentagon’s market leading position as a supplier of maleic anhydride derivatives that complement Vertellus’ alkenyl succinic anhydrides (ASA) business.
 
“The complementary chemical expertise between the two businesses also aligns with their manufacturing locations. Beyond the chemistry fit, Pentagon operates two UK manufacturing sites which build upon Vertellus’ position in the UK. Having three sites in close proximity to each other will enable us to build a robust infrastructure to support additional growth,” added Preziotti.
 
Vertellus is a specialty chemicals company focused on the manufacture of ingredients used in pharmaceuticals, personal care, nutrition, agriculture, and a host of other market areas. It is the global producer of pyridine and picolines, specialty pyridine derivatives, DEET, castor oil derivatives and systems, and a world leader in vitamin B3 and citrate polymer additives and systems.
 

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