France's Arkema buys 2 Chinese chemical firms
Arkema S.A., a chemical manufacturer based in Colombes, France, says it is purchasing two Chinese chemical companies that specialize in the production of automotive bio-plastics.
In its statement, Arkema says it will purchase Hipro Polymers and Casda Biomaterials, which together generated sales of $230 million (1.5 billion yuan) last year.
The two companies produce chemicals used to make polyamide 11, a bio-plastic derived from vegetable oil. It is often used to make fuel lines, airbrake tubes and cable sheaths.
The two companies are predominantly owned by a joint venture between Feixiang Chemicals and Bain Capital. Arkema says it will acquire a 100 percent stake in the companies, which have an enterprise value of $365 million (2.3 billion yuan).
Hipro is based in Zhangjiagang, 110 km from Shanghai, while Casda is headquartered in the city of Hengshui, which is 250 km from Beijing.