Indianapolis-based Vertellus Specialties Inc. has announced the acquisition of an overseas company. The specialty chemicals producer says the deal for Pentagon Chemicals Holdings UK Ltd. will “significantly” expand its presence in the agrochemical and pharmaceutical sectors. November 3, 2014

News Release

INDIANAPOLIS, Ind. – Vertellus, the world's leading producer of pyridine and pyridine derivative chemicals, today announced that it has purchased Pentagon Chemicals (Holdings) UK Ltd., a leading manufacturer of fine and specialty chemicals used in the life sciences industry. The acquisition significantly expands Vertellus' manufacturing presence in the agrochemical and pharmaceutical sectors and positions Vertellus to complement its current chemistries with U.K.-based Pentagon's strong capabilities inphosgenation, 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 both 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 market leading 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. “Beyond the chemistry fit, Pentagon operates two UK manufacturing sites which build upon Vertellus' position in the UK. Having three sites in close proximity to each other will enable us to build a robust infrastructure to support additional growth,” Preziotti said.

Integration of the two business units is underway and company leaders will jointly be attending the Chemical Industries Association annual dinner in London, on November 20. “Given the complementary capabilities of Vertellus and Pentagon, we look forward to supplying life science companies with a high quality supply of actives and critical intermediates delivered by a team who understands both the complex chemistries and the business markets in which they are used,” Preziotti said.

About Vertellus

Vertellus is a specialty chemicals company focused on the manufacture of ingredients used in pharmaceuticals, personal care, nutrition, agriculture, and a host of other market areas affected by trends favoring “green” technologies and chemistries. Vertellus is the #1 global producer of pyridine and picolines, specialty pyridine derivatives, DEET, castor oil derivatives and systems, and a world leader in vitamin B3 and citrate polymer additives and systems. Vertellus benefits from a technically advanced global manufacturing base and has approximately 800 employees. Vertellus is headquartered in Indianapolis, Indiana.

Source: Vertellus Specialties Inc.

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