Chance & Hunt buys Kemira GrowHow Process Chemicals business
3 August 2007
Chance & Hunt, part of the Azelis Group, has announced it has signed a deal to purchase Kemira Growhow’s Process Chemicals business, which is based at their Ince manufacturing site in Cheshire, UK.
The business to be acquired sells and distributes nitric acid, anhydrous ammonia and aqueous ammonia. In addition, Chance & Hunt has been appointed as distributor for the remaining Process Chemicals products including ammonium nitrate solution, demineralised water, magnesium nitrate and technical grade urea, supplying the chemicals manufacturing, rubber, metal treatment and waste treatment industry sectors. Kemira Growhow will continue to operate the plant and supply all other products.
Chance & Hunt is ideally placed to take over the Process Chemicals business having the necessary logistics skills and accreditation to manage the safe handling of hazardous chemicals. The company also already serves 70% of Kemira GrowHow’s Process Chemicals existing customer base with other products from its extensive chemical products portfolio.
The opportunity to purchase the Process Chemicals business, which has annual sales of more than £ 10 million, arose as a result of the new joint venture between Kemira Growhow and Terra Nitrogen. This JV includes the Process Chemicals business of Terra Nitrogen and the fertilizer business of both partners. As part of Competition Commission clearance, the Commission established that the JV could result in a substantial lessening of competition in the process chemicals business specifically nitric acid, ammonia and aqueous ammonia and, as a consequence, sought a suitable remedy in the form of a divestment of the Process Chemicals business. A remedy was agreed, including the sale of the Kemira GrowHow Process Chemicals business to Chance & Hunt and the Competition Commission has given this remedy its approval.
An important element of the divestment of the Kemira GrowHow Process Chemicals Business is an Operating and Maintenance Agreement together with the requisite long-term lease on assets. This will effectively provide toll manufacturing facilities to Chance & Hunt who will operate completely independently from the JV thereby replicating the competitive position previously generated by Kemira GrowHow.
The completion of the Kemira GrowHow / Terra Nitrogen JV is still dependant on acceptance by the CC of the joint undertakings which if successful would result in the completion of the purchase by Chance & Hunt by the end of August.
For more information contact:
Dianne Nott Tel 01925 267557 Mob 07860 272754