The agreement is the first strategic deal struck by Arxada – formerly Lonza Specialty Ingredients – since its split from Lonza Group
Swiss chemicals company Arxada and Troy Corporation, a New Jersey, US-based leader in microbial control solutions, have entered into an agreement to combine the two companies.
The agreement is the first strategic deal by Arxada, formerly known as Lonza Specialty Ingredients (LSI), since the business’ purchase by Bain Capital and Cinven from Lonza Group.
As part of the deal structure, Troy’s owners will invest in the combined company.
The partnership is anticipated to create a ‘comprehensive and innovative’ offering in microbial control, with Arxada benefitting from Troy’s technical expertise and innovations, including 3-iodo propynyl butyl carbamate (IPBC), which Arxada does not currently manufacture.
“The combination of Arxada and Troy will reinforce our position as a leading global provider of microbial control solutions,” said Arxada CEO Marc Doyle.
“Our decision to merge with Troy just four months after our launch as an independent company highlights our ambition and commitment to creating the broadest and most innovative solutions for our customers in this sector.
“The combination also fits with our strategy of expanding our geographic footprint and the scale and depth of our capabilities by bolstering our manufacturing capacity in MCS beyond North America into Europe and Asia."
Daryl D Smith, Chairman, President and CEO of Troy, added: “For over 50 years Troy has developed and manufactured preservatives and additives for various industries, enabling our customers to produce high performing, cost-effective and sustainable products.
“The combination of Troy’s strength in architectural coatings and industrial preservation, leadership in IPBC technology and broad range of performance additives perfectly complements Arxada’s strengths in wet state preservation. The joining of the companies will deliver significant added value to our customers going forward.”
The deal is said to be subject to customary approvals and financial details were not disclosed.