Columbian Chemicals Co. announces ownership change
Columbian Chemicals Co. is pleased to announce today that South Korean-based DC Chemical Co. Ltd., and One Equity Partners, a private equity affiliate of J.P. Morgan Chase & Co., completed the purchase of the company from Phelps Dodge Corp. under the agreement, which was announced Nov. 16, 2005. DC Chemical Co. and One Equity Partners have joint ownership in the new company, which will continue to operate from its headquarters and technology center in Marietta, Georgia, as Columbian Chemicals Co. The transaction included Columbian’s business in its entirety.
“The new owners are committed to this business and this industry, and I view this as a very positive development for our organization’s future,” said James P. Berresse, Columbian’s president and CEO. “This transition will provide us with the platform to not only continue meeting our customers’ needs today but to meet their future needs for high quality carbon black products. We are all looking forward to adding a new significant chapter to Columbian’s long and distinguished history.”
DC Chemical Co. has two-thirds direct interest of the business and One Equity Partners has the remaining one-third direct interest. A new board of directors will be established and will consist of members from Columbian, DC Chemical, and One Equity Partners.
“DC Chemical has been interested in growing in the carbon black industry for some time,” said Soo Young Lee, DC Chemical’s chairman. “Expansion is the direction we are taking, and buying into the world’s third largest carbon black manufacturer was an opportunity we couldn’t miss.”
DC Chemical Co. is a leading South Korean chemical company, based in Seoul, with approximately $2.2 billion in revenue. The company operates two carbon black production facilities in Korea and is a global producer of other organic and inorganic chemical products including carbon pitch, benzene, toluene, xylene, TDI and soda ash. The company is publicly traded on the Korean stock exchange. One Equity Partners is a private equity company affiliated with J.P. Morgan, with over $5 billion of commitments under management, with 18 portfolio companies including several relating to the chemical industry.
Columbian Chemicals Co. is one of the world’s leading producers of carbon black – an engineered material that improves the strength, durability and overall performance of a range of products including tires and other mechanical rubber goods, as well as inks, paints, plastics and coatings. The company is the only major global carbon black manufacturer to have earned the ISO 14001 certification, an internationally recognized standard for environmental management, at all of its manufacturing facilities.
Based in Marietta, Georgia, Columbian Chemicals Co. owns and operates 12 carbon black manufacturing facilities in Brazil, Canada, England, Germany, Hungary, Italy, Korea, Spain and the United States, employing approximately 1,300 people worldwide.