Cathay Industries today announced that it has entered into an agreement with Venator Materials PLC (NYSE: VNTR) (“Venator”) to purchase its iron oxide pigment business.
Cathay Industries is a global and sustainable manufacturer of complete colors solutions, and its leadership in the inorganic pigment industry is now significantly reinforced through this transaction. The target business, Venator’s iron oxide pigment, has achieved steady growth and maintained profitability amid the pandemic and market fluctuations, demonstrating strong competitiveness and resilience.
“The acquisition of Venator’s Iron Oxide Pigment operation transforms our global manufacturing footprint, providing tremendous synergies and new growth opportunities,” said Terence Yu, Cathay Industries Group CEO.
In addition to Venator’s product portfolio, the purchase includes eight manufacturing sites and one administrative site, across 6 countries on 4 continents. This transformational investment demonstrates Cathay’s commitment to further its global network, with customization capabilities close to its customers and partners.
“We will remain strategically focused on continuing Cathay’s exceptional level of quality, product sustainability, innovation, service, and supply chain security to our valued customers and partners,” Mr. Yu said.
With a shared culture focused on customer centricity, production excellence and sustainability, Cathay Industries’ management sees strong complementarities between the two businesses and looks forward to welcoming Venator’s team and to partner together for long-term value creation.
The transaction is expected to close by the end of first quarter 2023, subject to the customary closing conditions. UBS AG acted as financial advisor to Cathay. White & Case acted as international legal counsel to Cathay Industries.