SOUTHFIELD — Italmatch Chemicals Group, a chemical company based in Genoa, Italy, has announced an agreement to acquire the Southfield chemical manufacturer Detrex Corp. (OTC: DTRX) for $27 a share in cash.
The purchase values Detrex at $45.9 million, based on 1.7 million shares outstanding.
The price was an 8 percent premium over the closing price of Detrex stock as of Thursday, Nov. 9.
The Detrex board has unanimously approved the transaction.
“After thorough analysis, the board has unanimously endorsed this proposed sale, which we believe maximizes value for our stockholders, said Detrex President and CEO thomas E. Mark. “On behalf of the board, I would like to recognize our outstanding team of dedicated employees who have made Detrex and its operating subsidiary, The Elco Corporation, the success it is today. Elco and Italmatch share the same high operating standards and have a similar overall company culture. The board believes this is a great opportunity for Elco to be a part of an organization with deeper resources and operational scale in the specialty chemicals business. We look forward to working with Italmatch to promptly complete the transaction.”
Italmach is a global specialty additives chemical company with 340 million Euros a year in sales. It has manufacturing plants in Italy, Spain, Germany, the United Kingdom, China, Japan, and the United States. It is owned by Ardian France S.A., the largest Eruopean independent private investment firm.
The proposed merger is expected to close by Dec. 31. Directors and major shareholders representing approximately 52 percent of the shares have agreed to vote in favor of this proposal unless a better offer is received.
Detrex manufactures specialty chemicals serving three business areas — additives for industrial petroleum products, high purity hydrochloric acid for the semiconductor industry, and specialty chemicals.