NORTH CHARLESTON, SC,
Nov. 7, 2012
(Business Wire) -
MWV Specialty Chemicals, a division of MeadWestvaco Corporation (NYSE: MWV), announced a definitive agreement to purchase the remaining outstanding ownership stake of Resitec Industria Quimica, Ltda., a Brazilian company that serves the Latin American Pine Chemicals industry. MWV and South Africa-based AECI Limited (JSE: AFE) have held a 50-50 joint venture partnership interest in Resitec for the past four years. The decision to move Resitec to one owner was made jointly. The agreement is contingent on final government approvals. Terms of the agreement were not disclosed.
"We've had a successful four-year joint venture partnership interest in Resitec, and we are pleased to have them join MWV as we continue to accelerate our growth in emerging markets," said Ed Rose, president, MWV Specialty Chemicals. "The Resitec employees have built a strong business, and we look forward to their continued support in serving our customers. This transaction represents MWV's commitment to pine chemicals, which is core to our business in Brazil and in Latin America. We will leverage our innovative products and strong technical expertise with current customers, and in expanded markets, including oilfield, adhesives and paving solutions to profitably grow in this important region," he added.
"Growth in Brazil remains an important component of AECI's strategy," said Dr. Graham Edwards, CEO of AECI. "The company has reviewed and refined the details of this strategy in terms of its preferred target markets and business model. Whilst involvement in Resitec has been invaluable for acquiring local knowledge and experience as a platform for future expansion, AECI concluded that Resitec is not ideally aligned with its core strategy."
With approximately 115 employees, Resitec's operations include a manufacturing facility located in the city of Duque de Caxias, Rio de Janeiro, an administrative office located in Barra da Tijuca, Rio de Janeiro and a tall oil refinery in the city of Palmeira, Santa Catarina, Brazil. Resitec currently provides chemical products for the rubber, lubricants, food and adhesives markets, and will expand its offerings to include asphalt and oilfield markets following the acquisition.
MWV has operated in Brazil for nearly 60 years. MWV Rigesa is a leader in the Brazilian corrugated packaging market, serving customers in the fresh produce, frozen meat, consumer and industrial goods markets. MWV also provides packaging solutions for the healthcare, personal care, and beverage markets in Brazil. The company has 3,000 employees in the region and operates one paper mill, five corrugated packaging plants, one paperboard packaging plant, and 54 thousand hectares of forest plantations, with sales offices and commercial representatives strategically located nationwide.
MeadWestvaco Corporation (MWV) is a global packaging company providing innovative solutions to the world's most admired brands in the healthcare, beauty and personal care, food, beverage, home and garden, tobacco, and agricultural industries. The company also produces specialty chemicals for the automotive, energy, and infrastructure industries and maximizes the value of its land holdings through forestry operations, property development and land sales. MWV's network of 125 facilities and 16,000 employees spans North America, South America, Europe and Asia. The company has been recognized for financial performance and environmental stewardship with a place on the Dow Jones Sustainability World Index every year since 2005. Learn more at www.mwv.com.
Resitec Industrial Quimica, Ltda. is the largest producer of oleochemicals-based products in Brazil, specializing in rubber emulsifiers, adhesive resins and lubricants. It employs approximately 115 people in its manufacturing locations in Duque de Caxias, Rio de Janeiro and in Palmeira, Santa Catarina. More information about Resitec and its product offerings can be found at resitec.com.br.
AECI is an explosives and specialty chemicals company domiciled in South Africa. Group businesses service the mining and manufacturing sectors both locally and internationally. The focus for growth is on Africa, South America and South East Asia. AECI's businesses are characterised by application know-how and service delivery. They often operate in niche markets and are supported by leading technology which is developed in-house or is sourced from international partners. In the last five years the Group has invested R2 billion in a strategic capital investment programme to enhance its future growth in the mining and manufacturing areas, with particular emphasis on mining chemicals and initiating systems.