Kraton Performance Polymers close to buying Arizona Chemical for more than $1.2 bn

Kraton Performance Polymers Inc, a US-based maker of rubbers used in adhesives, coatings and personal care products, is close to buying pine chemicals producer Arizona Chemical Co for more than $1.2 billion, including debt, Reuters yesterday reported, citing people familiar with the matter.

Arizona Chemical's majority owner, private equity firm American Securities had put the company up for sale, and Kraton is competing in an auction against private equity firm Advent International, the report said.

Based in Florida, Arizona Chemical makes pine chemicals used in fragrances, plastics and household cleaners.

It provides natural pine-based materials to customers in the adhesives, roads & construction, tyres and rubber, lubricants, fuel additives, and mining. industry.

It employs more than 1,100 people and has chemical manufacturing plants in the US, Britain, France, Germany, Sweden and Finland.

Houston-based Kraton is a leading global producer of engineered polymers that are used in a wide variety of applications including consumer and personal care items, adhesives and coatings, electronics, medical supplies, automotive components, and paving and roofing materials.

Kraton offers its products to more than 800 customers in over 60 countries worldwide and has manufacturing facilities in the US, Germany, France, Japan and Brazil.