By Liz White, ERJ staff
Houston, Texas-Styrenic block copolymer supplier Kraton Polymers has been bought by the Texas Pacific Group from previous owner investment firm Ripplewood Holdings llc. The transaction, which values Kraton at $770 million, is expected to be closed by the end of the year.
The Kraton business, which has a turnover of more than $600 million, supplying styrenic thermoplastic elastomers, was spun off by Shell Chemicals in 2001
TPG is â€œa significantly larger investment firmâ€ than Ripplewood, and aims generally to keep its acquisitions for 5 to 7 years, long enough to plan ahead with the Kraton business, commented Roger Morgan, London based head of the global Kraton D business.
â€œOne reason why TPG, and several other investors, were interested in the Kraton businessâ€ is that it has shown â€œsustained performance in the current downturn of the economy,â€ said Morgan.