New specialty chemicals company is born

By Kirsty Barnes

- Last updated on GMT

Related tags Manufacturing

A new specialty chemicals company, Vertellus Specialties, has been
created in the US to make high-growth and high-value

The new firm is the brainchild of Arsenal Capital Partners - an industry-focused investor in lower-middle market, niche manufacturing and service companies - and is the combination of two existing Arsenal portfolio companies, Rutherford Chemicals and Reilly Industries.

"We are going to work closely with Vertellus to help ensure that the merging of the market, technology, manufacturing and product development capabilities of these two companies results in reduced cost, enhanced focus, profitable growth and substantial investment value,"​ said Barry Siadat, managing director at Arsenal.

Consisting of three divisions - Agriculture and Nutrition Specialties, Health and Specialty Products and Performance Materials - Vertellus will now produce a range of fine and specialty chemicals for the manufacture of agrochemicals, pharmaceuticals, nutritional supplements, and personal care products, as well as industrial products including plastics, polymers, adhesives, sealants, coatings and inks.

The new company, headquartered in Indianapolis, Indiana, will also specialise in a number of chemical manufacturing and formulation processes.

Vertellus said it already holds a number of industry trademarks, registrations and patents and expects a large majority of its annual revenue is to come from products with leading global market positions.

The firm also said it expects to benefit from an existing global supply chain, a flexible global manufacturing base, and a number of long-standing contracts with blue-chip customers.

"We are very excited about the outlook for the combined company,"​ said Timothy Zappala, president and CEO of Vertellus.

"Vertellus is a technology and market leader in an industry with high barriers to entry and favorable market trends."

These market trends were highlighted as healthy living and anti-ageing products, 'green' and environmentally-friendly products and ingredients, as well as agricultural engineering.

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