Vertellus, producer of pyridine and pyridine derivative chemicals, acquired Pentagon Chemicals (Holdings) UK Ltd., a manufacturer of fine and specialty chemicals used in the life sciences industry. The acquisition expands Vertellus’ manufacturing presence in the agrochemical and pharmaceutical sectors and enables Vertellus to complement its current chemistries with U.K.-based Pentagon’s strong capabilities in phosgenation, chlorination, Grignard and sodium dispersion, among others.
The transaction is expected to boost earnings of Vertellus Specialty Materials division approximately 20 percent, contributing to a 13 percent increase in total company revenue. The acquisition of Pentagon is part of Vertellus’ vision to expand its Specialty Materials footprint in the life science sector through organic growth and strategic acquisitions. Revenues from life science applications represent more than 65 percent of the company’s total revenue, and Vertellus expects the acquisition will significantly increase its agriculture chemical and pharmaceutical business.
According to Vertellus CEO Rich Preziotti, the company was impressed with Pentagon’s expertise in producing high value reagents used to produce complex intermediate and active molecules combined with Pentagon’s position as a supplier of maleic anhydride derivatives that complement Vertellus’ alkenyl succinic anhydrides (ASA) business. He added that the complementary chemical expertise between the two businesses also aligns with their manufacturing locations.
For more information, visit: www.vertellus.com