McIntyre specialises in the global manufacture of specialty surfactants and the acquisition is exptected to reinforce Rhodia’s Novecare brand for personal cleansing, as well as extending its hair care offerings.
According to Rhodia CEO Jean-Pierre Clamadieu this will help to provide further growth in areas where the company is already a market leader.
“It will reinforce our presence in innovative markets which are largely resistant to economic downturn,” Clamadieu added.
Covering all bases
To a lesser extent the deal will also reinforce Rhodia’s presence in the home, institutional and industrial cleaning markets, as well as driving new opportunities for oilfield production and agrochemical applications, targeting fast-growing developing markets such as Latin America and Asia Pacific.
Rhodia Group hopes the McIntyre acquisition will stimulate growth in an increasingly uncertain economic climate.
Although the global credit crunch has not affected the personal care industry as much as other sectors, suppliers in particular are feeling the pinch as retail sales fall and finished goods manufacturers put pressure on their suppliers to reduce prices.
McIntyre has production facilities in both the UK and the US, employing over 200 people, and has continued to grow at double digit rates over the past three years, contributing to 2008 sales of an estimated $146bn.
Significant synergies
Rhodia says that the acquisition will bring about significant synergies, based mainly around selling opportunities, supply chain and improvements in the logistics process.
These synergies are expected to double the EBITDA of the acquired business within the group by 2011, building on McIntyre’s existing recurring EBITDA margin of 10 percent.
Rhodia has had a busy year, having strengthened its presence in the Asia market, signed a major marketing deal for its conditioning polymers and making major surfactant and pearliser product launches
Focus on China
In November 2008 the company announced the opening of its Shanghai research and development centre, a move aimed at tapping into the fast-growing markets in the Asia Pacific region, particularly China.
In 2007, 27 per cent of Rhodia’s total sales came from the region and the company believes the new Chinese centre will help it achieve its ‘ambitious growth and development objectives’ in the region.
Meanwhile, in October, the company announced a marketing deal with KCI to strengthen the position of its conditioning polymer range, while in April the In-Cosmetics event provided a platform to launch a pearlising agent and a ‘green’ surfactant