CBPE Acquires Global Specialty Water Chemical Business from Chemtura Corp.
Close Brothers Private Equity (CBPE) announced the acquisition of the industrial water chemicals business from U.S. listed Chemtura Corp. for an acquisition price of $85 million. The business will be renamed BWA Water Additives.
BWA is a global supplier of niche speciality chemicals used in a wide range of industrial water treatment applications including the fast growing desalination sector. Key brands in BWA’s portfolio include Belgard and Flocon for desalination, Belclene for industrial scale control as well as BromiCide and Bellasol.
BWA’s chemical treatments are used by customers on sites ranging from oil refineries and breweries to air conditioning in office buildings. It supplies ‘scale control’ and ‘biocides’ products to over 80 countries worldwide and is the world leader in treating desalination units where drinking water is produced from seawater. Its products are also used in the prevention of microbiological growth and build-up of lime scale in industrial plants ranging from large cooling towers to smaller air conditioning units.
As part of the deal, CBPE has acquired the sales, marketing, technology and supply chain assets from Chemtura. The transaction does not include the manufacturing operations or facilities, which will continue to be operated by Chemtura.
The proceeds of CBPE’s funding will be used to expand BWA’s product range as well as new product research and development. BWA represents the latest in a series of deals by CBPE in the chemicals sector.
Iain Slater, partner at CBPE, said, “BWA is an excellent investment for CBPE. We are investing in a business with a long established track record of delivering innovation, product quality and customer service to its clients. Several of the markets it operates in, such as desalination and oilfield chemicals, have significant growth potential, and we believe BWA is extremely well positioned to capitalize on this, particularly with the benefit of its market leading brands such as Belgard for desalination and Belclene for industrial scale control.”