RICHMOND: NewMarket Corporation (NYSE: NEU), a leading developer and manufacturer of chemical additives for petroleum products, announced today that it has signed a definitive agreement to buy AMPAC Intermediate Holdings, LLC, the parent company of American Pacific Corporation (AMPAC), for about $700 million.
AMPAC is the top North American producer of critical performance additives for solid rocket motors used in space launch and military defense applications. AMPAC has been serving these sectors for over 60 years and is qualified on many NASA and Department of Defense programs. AMPAC also makes Halotron BrX, a clean and eco-friendly fire extinguishing agent.
The acquisition of AMPAC will expand NewMarket’s exposure to mission critical, resilient sectors and enhance its long-term commitment to innovation, safety, and customer satisfaction.
The transaction is expected to close in the first quarter of 2024, subject to customary closing conditions and regulatory approvals. NewMarket plans to finance the deal with cash and borrowings under its revolving credit facility.
Thomas E. Gottwald, NewMarket’s Chairman and CEO, said: “We are excited about the opportunity to acquire AMPAC. With consistent cash generation, sustainable competitive advantages in vital markets, and an experienced management team, it is a terrific fit with our acquisition and diversification criteria.
We view AMPAC as a strategic, national asset with a mission-critical role in global safety, security, and space programs, and we believe NewMarket is the right long-term owner for this essential business. We look forward to welcoming the entire AMPAC team into the NewMarket family.”