Wednesday, November 3, 2021
- Basel, Switzerland and Florham Park, NJ USA
– Arxada, a global speciality chemicals business, and Troy Corporation, a global leader in microbial control solutions and performance additives, today announce that they have entered into an agreement to combine the two companies.
This agreement represents the first strategic deal by Arxada, formerly known as Lonza Specialty Ingredients or LSI and owned by private equity funds Bain Capital and Cinven, since the purchase from Lonza Group AG in July 2021. As part of the deal structure, Troy's owners will invest in the combined company.
The partnership is a logical next step in Arxada’s strategy to strengthen its offering and enhance the capabilities of its Microbial Control Solutions ('MCS') business. Troy is a global leader in the field of industrial preservation with broad expertise in paints and coatings, wood protection and preservation, home and personal care, plastics and textiles, energy and metal working fluids. The combination will create a comprehensive and innovative offering in microbial control, enabling the delivery of new solutions and value-added services to customers.
Arxada will benefit from Troy's technical expertise, trusted customer relationships, and broad portfolio of performance products as well as a long history of innovation, including the invention of 3-iodo propynyl butyl carbamate (IPBC), which Arxada does not currently manufacture. In addition, the proposed transaction will enhance Arxada's commercial presence across the globe and add several production sites in important locations including Newark, NJ, USA; Horhausen, Germany; Moerdijk, Netherlands and Kabinburi, Thailand. This extensive manufacturing footprint will allow the combined entity to better serve customer needs and strengthen its position as a trusted partner of choice in microbial control.
Commenting on the combination, Marc Doyle, Chief Executive Officer of Arxada, said:
"The combination of Arxada and Troy will reinforce our position as a leading global provider of microbial control solutions. Our decision to merge with Troy just four months after our launch as an independent company highlights our ambition and commitment to creating the broadest and most innovative solutions for our customers in this sector."
"The combination also fits with our strategy of expanding our geographic footprint and the scale and depth of our capabilities by bolstering our manufacturing capacity in MCS beyond North America into Europe and Asia."
"We look forward to welcoming our new colleagues at Troy so that, together, we can build on our combined expertise in microbial control to deliver innovative, sustainable solutions for all of our customers. We remain committed to working closely with our customers to make sure we continue to meet their needs and ensure a smooth transition once the deal is complete."
Daryl D. Smith, Chairman, President, & Chief Executive Officer of Troy, commented:
"For over 50 years Troy has developed and manufactured preservatives and additives for various industries, enabling our customers to produce high performing, cost-effective and sustainable products. The combination of Troy’s strength in architectural coatings and industrial preservation, leadership in IPBC technology and broad range of performance additives perfectly complements Arxada’s strengths in wet state preservation. The joining of the companies will deliver significant added value to our customers going forward."
Kirkland & Ellis is acting as the legal adviser to Arxada and its owners Bain Capital and Cinven. Norton Rose Fulbright US LLP is acting as legal adviser, and JP Morgan Chase is acting as financial adviser, to Troy Corporation.
The Parties will work to close the transaction as soon as possible, subject to obtaining customary approvals. Financial details of the deal have not been disclosed.
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Stephanie Cuthbert/Rob Winder
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Arxada, formerly part of Lonza Group, is a global specialty chemicals business with a world-class offering in Microbial Control Solutions ('MCS') and Specialty Products Solutions ('SPS'). Arxada provides a broad portfolio of differentiated products targeted at a range of end uses, supported by its leading regulatory capabilities, IP expertise and established track record in R&D.
Arxada's MCS business is a world leader addressing six target end uses: hygiene, home and personal care, paints and coatings, crop protection, material protection and wood protection. MCS is built on superior regulatory expertise, the broadest set of bioactives and the widest range of registrations in the world, which are critical to maintaining the integrity of its customers' products.
Arxada's unique SPS business provides complex, high-quality technologies and chemistries to customers across a range of industries within its three divisions: performance intermediates and chemicals, composite materials and the custom development and manufacturing organisation. The two businesses work closely together to provide complementary expertise and deliver unique, innovative solutions to help customers protect their products from harmful microorganisms, improve health and safety and reduce their environmental footprints.
Arxada has a global footprint spanning 32 countries across five continents. Its world-leading team of around 2,900 employees serve over 5,000 customers across a wide range of industries.
Arxada is owned by Bain Capital Private Equity and Cinven.
To learn more about Arxada, please visit: arxada.com and Arxada on LinkedIn.
About Troy Corporation
Troy Corporation develops and manufactures specialty materials that enhance the performance of its customers' products and processes. A global leader in microbial control solutions, Troy offers a broad portfolio of products used in a diverse range of industrial applications including paints & coatings, wood protection and preservation, home and personal care, plastics and textiles, energy, and metalworking fluids. Troy produces over 400 preservatives, performance additives, and metal carboxylates at manufacturing facilities on 3 continents, and supports customers with worldwide sales offices, warehouses, and logistics facilities.
Troy is widely recognized for innovation, technical support, superior and value-added services. Troy has field testing sites and state-of-the-art technology centers located around the world, providing a wide range of product development, testing and support to its customers. In addition, Troy offers the unique TMMA microbial management program to enable customers to achieve contamination-free products and processes while reducing total preservation cost.
Troy offers customers full regulatory support worldwide, with access to the company's highly experienced Regulatory professionals located in the Americas, Europe, and Asia. Through global resources and regional expertise, Troy is committed to helping manufacturers meet demanding requirements for compliance and sustainability.
Troy is headquartered in Florham Park, New Jersey, with sales offices throughout the United States, Canada, Europe, Asia, and Latin America.
For more information, please visit troycorp.com or follow Troy Corporation on LinkedIn.