February 11 2014, David R Brown
Nexeo Solutions to buy mid-size US speciality distributor, Archway Chemicals Inc
Nexeo Solutions has announced that it has entered into an agreement to acquire US distributor Archway Sales, Inc. and JACAAB, LLC (“Archway”) as part of the company's continued drive to expand its presence in specialty chemicals. The transaction is expected to close on or about April 1, 2014, and is subject to customary closing conditions and regulatory approvals.
Archway's specialty portfolio closely aligns with our end market strategy
Archway is a leading chemical distribution company and provider of specialty chemicals with more than 45 years serving customers in the Midwest, Northeast, Central, Southeast and West regions of the U.S. With more than 100 employees, Archway operates from their headquarters in St. Louis as well as regional offices in Kansas City, Memphis, Chicago, Ohio, Atlanta and Elmsford, NY. Focused on specialty products, Archway is a preferred distributor of CASE, Polymers and other chemical products representing some of the leading chemical suppliers. Archway revenues were around $200.0 in revenue for the fiscal year ended June 30, 2013.
“Archway's specialty portfolio closely aligns with our end market strategy,” says Nexeo Solutions' President and CEO, David Bradley. “The similarity in our business models and our complementary product portfolios make this the natural next step on our path to market leadership.”
This acquisition creates a comprehensive product offering. The combined capability of Nexeo Solutions and Archway creates a full line distributor and a true leader in the North American coatings, adhesives, sealants and elastomers (CASE) industries.
“I believe we can bring our expertise and best practices to a common platform to make us stronger and more competitive,” according to Jack Baumstark Sr., Chairman and CEO for Archway. “We strive to be the preferred choice that comes to the minds of employees, customers, and suppliers in specialty chemical distribution.”
About Nexeo Solutions
Nexeo Solutions LLC is a US headquartered global chemical and polymer distributor formed in 2010 employing more than 2400 employees with operations across North America, Europe and Asia. The company supplies 27,000 products into over 70 countries for over 1,200 suppliers to more than 28,000 customers.For the full year ending 30th September 2013 Nexeo Solutions achieved sales revenues in excess of $4.4Bn.
Source(s): Nexeo Solution Press Release