MWV Specialty Chemicals, a division of MeadWestvaco Corporation (NYSE: MWV), announced a definitive agreement to purchase the remaining outstanding ownership stake of Resitec Industria Quimica, Ltda., a Brazilian company that serves the Latin American Pine Chemicals industry. MWV and South Africa-based AECI Limited (JSE: AFE) have held a 50-50 joint venture partnership interest in Resitec for the past four years. The decision to move Resitec to one owner was made jointly. The agreement is contingent on final government approvals. Terms of the agreement were not disclosed.
“We’ve had a successful four-year joint venture partnership interest in Resitec, and we are pleased to have them join MWV as we continue to accelerate our growth in emerging markets,” said Ed Rose, president, MWV Specialty Chemicals. “The Resitec employees have built a strong business, and we look forward to their continued support in serving our customers. This transaction represents MWV’s commitment to pine chemicals, which is core to our business in Brazil and in Latin America. We will leverage our innovative products and strong technical expertise with current customers, and in expanded markets, including oilfield, adhesives and paving solutions to profitably grow in this important region,” he added.
“Growth in Brazil remains an important component of AECI’s strategy,” said Dr. Graham Edwards, CEO of AECI. “The company has reviewed and refined the details of this strategy in terms of its preferred target markets and business model. Whilst involvement in Resitec has been invaluable for acquiring local knowledge and experience as a platform for future expansion, AECI concluded that Resitec is not ideally aligned with its core strategy.”
With approximately 115 employees, Resitec’s operations include a manufacturing facility located in the city of Duque de Caxias, Rio de Janeiro, an administrative office located in Barra da Tijuca, Rio de Janeiro and a tall oil refinery in the city of Palmeira, Santa Catarina, Brazil. Resitec currently provides chemical products for the rubber, lubricants, food and adhesives markets, and will expand its offerings to include asphalt and oilfield markets following the acquisition.