Bayer MaterialScience LLC, one of the leading producers of high-performance plastics in North America, has agreed to sell its global powder polyester resins business and its U.S.-based liquid polyester resins merchant business to Northfield, Ill.-based Stepan Company, a leading producer of specialty and intermediate chemicals used in household, industrial, personal care, agricultural, food and insulation related products.
The sale is scheduled to be completed by June 1. Financial terms were not disclosed.
“The divestiture allows us to focus on our core competencies,” said Daniel Meyer, head of the Coatings, Adhesives and Specialties business unit at Bayer MaterialScience AG. “We believe we have found the right home for our North American polyester resins business and look forward to watching it develop further under new ownership.”
Bayer will retain its trade name Desmophen® to continue to sell its diverse portfolio of products to the coatings, adhesives, sealants and elastomers industries around the world, including liquid polyester resins in markets outside the United States.
F. Quinn Stepan, Jr., president and CEO of Stepan Company, said the acquisition will significantly expand Stepan’s polyol product offering. "This acquisition will diversify our polyol offering and accelerate our efforts to grow in CASE [coatings, adhesives, sealants and elastomers] and PUSH [Polyurethane Systems House] applications,” he explained. “We intend to make future capital expenditures to expand the capabilities at Columbus.”
Bayer acquired the Columbus facility in 2000, when it purchased Sybron Chemicals, Inc. Today, the facility includes both commercial and production operations, serving North America as a leading producer of polyester resins. Powder polyester resins are used in a variety of coatings applications, including industrial metal and transportation coatings. Liquid polyester resins are utilized as building blocks in various coatings and adhesives.
Both Bayer businesses are located in Columbus, Ga. The 45 Bayer employees who work at the Columbus facility will be offered the opportunity to become Stepan employees.