The Chemours Co. (Wilmington, Del.) has entered into a definitive agreement to sell its Glycolic Acid business for $137 million in cash to PureTech Scientific Inc., a company founded and backed by Iron Path Capital, a private equity firm focused on lower-middle market investments across the specialty industrial and healthcare sectors. With this acquisition, PureTech Scientific is positioning itself to become the global leader in organic synthesis of ultra-high purity alpha hydroxy acids for the Life Sciences and Specialty Chemical industries. The transaction is expected to close by the third quarter of 2023 subject to regulatory approvals and other customary closing conditions.
“Creating a better world through the power of our chemistry requires a clear focus on where to play and how to win,” said Mark Newman, President and CEO at Chemours. “While our goal is to position every one of our businesses for growth, over the past several months it became clear that PureTech Scientific and Iron Path Capital may be best positioned to take Glycolic Acid to the next level. We’re incredibly proud and appreciative of our Glycolic Acid team and wish them all the best in this exciting next chapter.”
Denise Dignam, President of Chemours Chemical Solutions, said: “Our Glycolic Acid portfolio includes a range of technical and cosmetic grades suitable for use in diverse applications. As passionate stewards of these brands, our team believes the portfolio is a fitting part of PureTech Scientific’s growth plan and is well reflected in the terms of this agreement.”
Iron Path Capital is building a portfolio of international businesses in the specialty industrials and life sciences sectors within its first fund. Its Co-founder and Managing Partner, Scott Mraz commented: “The forming of PureTech Scientific and acquisition of Chemours’ Glycolic Acid Business marks Iron Path’s first major investment in the specialty chemicals sector focused on the life science end markets. Our goal is to leverage Iron Path’s extensive operational expertise and technological capabilities to support PureTech Scientific’s growth plans through continued innovation with our customers.”
Iron Path’s fellow Co-founder and Managing Partner Rob Reistetter added: “The entire Glycolic Acid team has worked hard to create a leading business with an unmatched record of product quality, integrity and stewardship. Iron Path’s long-standing expertise in specialty chemicals, coupled with a strategy devoted to growing this business, makes us the ideal partner invested in the success of Glycolic Acid’s employees and customers.”
Grace Matthews, Inc. is acting as Chemours’ financial advisor and Spilman Thomas & Battle, PLLC is acting as its legal advisor. McDermott Will & Emery is acting as Iron Path Capital’s legal advisor.