Vertellus acquires Dow's sodium borohydride business

VERTELLUS has recently completed the acquisition of The Dow Chemical Company’s (NYSE: DOW) Sodium Borohydride (SBH) business. 

 

This development follows the company’s acquisition last November of Pentagon Chemicals (Holdings) UK Ltd to broaden its agrochemical offerings in the life sciences sector. The completion of both acquisitions will mean life sciences applications will now account for more than 65% of the total revenue of Vertellus.

 

Sodium borohydride (NaBH4), a process aid used in the life sciences sector, is used in the manufacture of a wide range of active pharmaceutical ingredients such as high-growth antiretrovirals for the treatment of HIV/AIDS

 

By acquiring SBH, Vertellus will be able to add new process aids and synthesis capabilities to its asset structure and boost its life sciences business. It can leverage the Elma, Washington state-of-art manufacturing facility of the acquired SBH business, the leading manufacturer of sodium borohydride used in the synthesis of fine chemicals, including pharmaceutical ingredients and agrochemicals. 

 

Vertellus will also expand its portfolio of high-performance, specialty chemicals for the industrial markets through the acquisition. SBH is a leading choice in the paper market for bleaching pulp used in paper and tissue, complementing Vertellus’ position in supplying specialty sizing agents.  

 

Further, SBH’s range of high-value, specialty applications as an additive and processing agent in petrochemical processing will supplement existing Vertellus products sold in the petrochemical and oil and gas markets. 

 

“The integration of the SBH business into Vertellus’ asset structure enhances the size, scales and scope of our offerings in the high-growth synthesis segment, providing new tools to serve global pharma manufacturers’ needs,” said Vertellus CEO Rich Preziotti.

 

“We look forward to investing in additional research and development that further leverages our capabilities and capacity at this world-class manufacturing facility,” Mr. Preziotti added.

 

A global leading producer of specialty chemicals for the life sciences market and other industrial sectors, Vertellus is a portfolio company of Chicago-based private equity firm Wind Point Partners.