Texas Pacific Group to acquire Kraton Polymers

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 “a significantly larger investment firm” 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.

“One reason why TPG, and several other investors, were interested in the Kraton business” is that it has shown “sustained performance in the current downturn of the economy,” said Morgan.