The styrenic block copolymer producer is being sold to Texas Pacific Group

The styrenic block copolymer producer is being sold to Texas Pacific Group

US private investment house Texas Pacific Group is to acquire Kraton Polymers from Ripplewood Holdings in a deal valued at $770m (E670m). Ripplewood, also a US investment firm, took control of Kraton from Shell in 2000. Over the last three years it transformed the company – the world’s largest producer of styrenic block copolymers – into a standalone business.

It oversaw a series of capacity expansions at Kraton “G” plants in Berre, France, and Belpre, US, and an expansion of the Kraton “D” plant at Paulinia, Brazil. Roger Morgan, Kraton vice-president for Europe, Africa and the Middle East, told PRW.com the change of ownership would benefit the company. “Texas Pacific is a bigger company than Ripplewood with a greater knowledge of working on a global business.”

Texas Pacific is more than three times larger than Ripplewood with assets of $13bn (E11bn) including fast food franchise Burger King, airline Continental and Punch Taverns as well as niche manufacturers such as Seagate and Gemplus.

“They [Texas Pacific] have knowledge of speciality production and also of developing brands,” Morgan said. He added that Texas Pacific would continue to support Kraton’s strategy “to increase capacity ahead of demand in the market”.

Kraton has manufacturing facilities in the US, The Netherlands, Germany, France, Brazil and Japan. The company has annual sales of over $600m (E522m) and employs 1,000 staff.