Sporting a new name but offering an old pedigree, Addivant (Middlebury, CT), the former antioxidant and UV stabilizer business of Chemtura, is looking to shake up the polymer additives sector.
"The additive industry has failed to really innovate at the same speed as the polymer industry," Peter Smith, Addivant president and CEO, told PlasticsToday. "Additives are, on average, decades old and really have not advanced; we're in the process of launching the next generation of additives, and they will have higher performance than the workhorse products that we still sell."
Addivant will operate as an independent portfolio company of private equity firm SK Capital, which finalized the purchase from Chemtura on May 1. On January 25, Chemtura agreed to sell its antioxidants and UV stabilizer business to SK for $200 million. Of that, approximately $97 million was payable in cash at closing and $9 million would be in preferred stock issued by Addivant, with the assumption of pension, environmental and other liabilities totaling approximately $93 million.