Balchem Corporation BCPC announced Thursday that it signed a definitive agreement to acquire Chemogas NV, a privately held specialty gases company based in Grimbergen, Belgium.
What Happened
Balchem is buying Chemogas from the company's management and from Glide Equity Management, a private equity firm focused on the Benelux region — Belgium, Netherlands and Luxembourg.
The amount of the transaction was not disclosed; it will be financed with Balchem's existing revolving credit facility and cash, the chemical manufacturer said in a press release.
Balchem said it expects the transaction to be accretive to its earnings per share in 2019.
Why It's Important
Chemogas is a leader in the packaging and distribution of specialty gases including ethylene oxide for medical device sterilization in the European and Asian markets, according to Balchem.
The acquisition expands Balchem's geographic reach in the packaged ethylene oxide market.
"We are very excited to add Chemogas' team of talented employees and their extensive packaging and supply chain capabilities to Balchem," Ted Harris, chairman and CEO of Balchem, said in a statement.
"The combination of our two companies will significantly enhance our ability to service and support our customers on a more global basis."
What's Next
The acquisition is subject to customary closing conditions.
Balchem shares were trading up by 0.7 percent to $100.09 at the time of publication Friday.
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