NewMarket Corporation (NYSE:NEU) entered into a definitive purchase agreement to acquire American Pacific Corporation from AE Industrial Partners, LP for approximately $700 million on December 1, 2023. NewMarket expects to finance the acquisition with available cash and borrowings under its revolving credit facility. The closing is conditioned upon the satisfaction or waiver of customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The Purchase Agreement and the Acquisition have been approved by the NewMarket?s board of directors and do not require the approval of the NewMarket?s shareholders. The transaction is expected to close during the first quarter of 2024. Matthew Arenson, Jeffrey Swatzell, Andrew Struckmeyer, Doug Gessner, Jeremy Liss, Rachel Cantor, Steven Cantor, Aaron Lorber, Jeffrey Seroogy, Jeffrey Quinn, Joshua Faulkner, Michael Falk, Jabir Yusoff, Sydney Jones, Christian Semonsen, Boyd Greene, Mario Mancuso, Luci Hague, Michelle Kilkenney, Carolyn Aiken, Mike Thorpe, Scott Scheele, Mark Gardner and Donna Peel of Kirkland & Ellis LLP acted as legal advisors to AE Industrial Partners and American Pacific Corporation. Guggenheim Securities, LLC and 3Wire Partners acted as financial advisors for AE Industrial Partners.
NewMarket Corporation (NYSE:NEU) completed the acquisition of American Pacific Corporation from AE Industrial Partners, LP on January 16, 2024. NewMarket also acquired $16 million of cash and cash equivalents of American Pacific Corporation. AMPAC will be managed as a separate business segment and not a part of petroleum additives segment. AMPAC will be accretive to net income in 2024.
NewMarket Corporation is a holding company operating through its subsidiaries, Afton Chemical Corporation (Afton), Ethyl Corporation (Ethyl), American Pacific Corporation (AMPAC) and Calca Solutions, LLC (Calca). The Afton and Ethyl companies develop, manufacture, blend, and deliver chemical additives that enhance the performance of petroleum products. AMPAC is a manufacturer of specialty materials used in solid rocket motors for the aerospace and defense industries. Calca is a producer of UltraPure and high-purity hydrazine – essential, mission-critical propellants that enable advanced aerospace and defense applications. Its petroleum additives segment includes lubricant and fuel additives. Its specialty materials segment includes critical materials used in solid rocket motors for space launch and military defense applications as well as propellants that enable advanced aerospace and defense applications that are integral to in-space propulsion systems for satellites and space probes.
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