Arxada, a global specialty chemicals business, and Troy Corporation, a global leader in microbial control solutions and performance additives, today announce that they have entered into an agreement to combine the two companies.
This agreement represents the first strategic deal by Arxada, formerly known as Lonza Specialty Ingredients or LSI and owned by private equity funds Bain Capital and Cinven, since the purchase from Lonza Group AG in July 2021. As part of the deal structure, Troy’s owners will invest in the combined company.
The partnership is a logical next step in Arxada’s strategy to strengthen its offering and enhance the capabilities of its Microbial Control Solutions (‘MCS’) business. Troy is a global leader in the field of industrial preservation with broad expertise in paints and coatings, wood protection and preservation, home and personal care, plastics and textiles, energy and metal working fluids. The combination will create a comprehensive and innovative offering in microbial control, enabling the delivery of new solutions and value-added services to customers.
Arxada will benefit from Troy’s technical expertise, trusted customer relationships and broad portfolio of performance products as well as a long history of innovation, including the invention of 3-iodo propynyl butyl carbamate (IPBC), which Arxada does not currently manufacture. In addition, the proposed transaction will enhance Arxada’s commercial presence across the globe and add several production sites in important locations including Newark, NJ, USA; Horhausen, Germany; Moerdijk, Netherlands and Kabinburi, Thailand. This extensive manufacturing footprint will allow the combined entity to better serve customer needs and strengthen its position as a trusted partner of choice in microbial control.
Commenting on the combination, Marc Doyle, Chief Executive Officer of Arxada, said:
“The combination of Arxada and Troy will reinforce our position as a leading global provider of microbial control solutions. 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.
“We look forward to welcoming our new colleagues at Troy so that, together, we can build on our combined expertise in microbial control to deliver innovative, sustainable solutions for all of our customers. We remain committed to working closely with our customers to make sure we continue to meet their needs and ensure a smooth transition once the deal is complete.”
Daryl D. Smith, Chairman, President, & Chief Executive Officer of Troy, commented:
“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.”
Kirkland & Ellis is acting as legal adviser, and The Valence Group of Piper Sandler as financial advisor to Arxada and its owners Bain Capital and Cinven. Norton Rose Fulbright US LLP is acting as legal adviser, and JP Morgan Chase is acting as financial adviser to Troy Corporation.
The Parties will work to close the transaction as soon as possible, subject to obtaining customary approvals. Financial details of the deal have not been disclosed.