Albemarle Corporation ALB has entered into an agreement to divest its Mineral Flame Retardants and Specialty Chemicals businesses to Huber Engineered Materials. The acquirer is a division of J.M. Huber Corporation, a leading global manufacturer of flame retardant additives. The acquisition, which is subject to customary closing conditions, is expected to close in early next year.
The agreement includes Albemarle's Martinswerk GmbH unit and Bergheim, Germany-based manufacturing facility. Also, the company’s 50% ownership interest in MAGNIFIN Magnesiaprodukte GmbH, a joint-venture with RHI AG at Breitenau, Austria, is part of the aforesaid agreement.
The transaction is in sync with Albemarle’s intention of selling non-core businesses and assets to boost growth opportunities. The company also plans to increase its shareholder returns. BofA Merrill Lynch is serving as Albemarle’s exclusive financial advisor for this deal.
Last month, the company had entered into an agreement to sell its Tribotecc metal sulfides business to Treibacher Industrie AG, a leading international player in the chemistry and metallurgy sectors. The transaction includes sites in Vienna and Arnoldstein, Austria and Tribotecc's proprietary sulfide synthesis process.
Albemarle is a premier specialty chemicals company with leading positions in attractive end markets globally.
Albemarle currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the diversified chemical space include Celanese Corporation CE, Innospec Inc. IOSP and Akzo Nobel N.V. AKZOY. All of the stocks sport a Zacks Rank #1 (Strong Buy).
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