Japan's Kurita Water Industries Ltd. is to acquire the Germany-based aluminum, paper chemicals and water treatment business of Israel-based manufacturer ICL Israel Chemical Ltd., helping the company expand into European markets.
The business makes active ingredients, formulations and customized water treatment solutions for use by industries and municipalities. The acquisition also includes ICL Performance Products' chemical additives business for the paper industry and related aluminum compounds.
Kurita, which specializes in water treatment in the industrial sector, has agreed to pay EUR250 million for the APW business units based in Ludwigshafen and D¸sseldorf, Germany, as well as at other ICL Performance Products sites in Europe and China. The Japanese firm will continue to operate the business units at their existing sites.
"Combining Kurita's existing customer base, which is mainly in Japan and the Asia region, with APW's customer base, will further strengthen Kurita's overseas business platform," commented Kurita president Toshiyuki Nakai.
APW's technologies and products are considered highly complementary with those of Kurita, Nakai added.
For ICL, selling this business is in line with its strategy to focus on its core operations in agriculture, food and engineered materials.
The parties expect to complete the transaction by the end of the year, subject to regulatory approval and other conditions.