Hercules Announces Acquisition of Quantum
Hercules Incorporated announced its acquisition of Quantum Hi-Tech Co. Ltd, a leading producer of carboxymethylcellulose (CMC) products located in Jiangmen City, Guangdong Province, China. The acquisition consists of a production facility commissioned in 1998 with current production capacity of 6,000 MT and annual sales of approximately $10 million USD. Quantum's key markets include food, toothpaste, ceramics, and paper with the majority of its sales in China.
Craig Rogerson, Acting President and Chief Operating Officer, stated, "Quantum is an excellent strategic fit for our Aqualon Division. It will create a platform for growth in Asia-Pacific, the fastest growing market for cellulose ethers in the world. The acquisition also fits well with Hercules' overall strategy to achieve growth through bolt-on acquisitions that complement our products and expand our market positions."
"By acquiring this leading CMC company in China, Aqualon will have a strong regional presence, becoming the only CMC producer with manufacturing facilities on 3 continents. With its low-cost manufacturing base, strong organization, and superior products for the Asian market, it is an excellent growth platform," said John Televantos, Aqualon Division President and Vice President, Hercules. "It also offers an additional channel for marketing other Aqualon products in China."
A spokesperson for Quantum added: "Combining Aqualon's resources and technical expertise with our established presence in China's marketplace, make excellent business sense for Hercules and an exciting future for Quantum."
The acquisition is expected to be accretive to earnings from the outset. Aqualon is a world leader in products that modify the physical properties of water-based systems. Its key markets served include manufacturers of personal care, such as hair, oral hygiene and skin products; paint manufacturers and producers of construction materials.
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