Funds advised by SK Capital Partners, LP, a private investment firm focused on the specialty materials, chemicals and pharmaceuticals sectors, announced it has signed a definitive agreement to acquire the specialty polymers business from Baker Hughes (Houston).
The specialty polymers business, with manufacturing operations in Barnsdall, Oklahoma, produces specialty low molecular weight olefin polymers, including a range of differentiated functional polymers and premium, high melting point polyethylene waxes. Over its 85-year history, the business has been dedicated to innovation and has developed a strong reputation as a premium specialty supplier and solutions provider to its diverse customer base.
Mario Toukan, a Managing Director of SK Capital, stated, “The specialty polymers business is a pioneer in the development of specialized polymerization technologies. We see tremendous opportunity for growth by further developing functional, solutions-oriented products that solve problems and create significant value for customers.”
“SK has extensive corporate carveout expertise and we look forward to partnering with management to transform the business into a world-class independent specialty chemical company with an intense focus on operational excellence,” added Jonathan Borell, a Managing Director of SK Capital. “As an independent company, the specialty polymers business will be able to build upon and enhance its reputation as a reliable provider of innovative and high-quality polymers.”
SK Capital and Baker Hughes are working together to execute a seamless transaction plan to continue to serve the specialty polymers business’s customer base reliably and safely. The transaction is expected to close in the second half of 2020. Morgan, Lewis & Bockius LLP acted as legal counsel to SK Capital and committed debt financing was provided by KeyBanc Capital Markets. Evercore acted as financial advisor and King & Spalding LLP served as legal counsel to Baker Hughes.