ALTA Performance Materials has reached an agreement to take over BASF’s Palatal business in Chile, a move that would mark ALTA’s second production operation in Latin America if the sale closes. ALTA announced the agreement Nov. 5; closing remains conditional on customary steps, including any applicable regulatory approvals.
The Chilean operation is in Concón. From there, it supplies vinyl ester and unsaturated polyester resins to customers in construction, mining, aquaculture, transportation and industrial sectors. Poder y Liderazgo reported that Concón is in Chile’s Valparaíso Region.
ALTA is headquartered in London and says its business includes unsaturated polyester and vinyl ester resins, as well as gelcoats for composite applications. Palatal’s products overlap with two of those materials, while the proposed purchase would add a Chilean operation to ALTA’s Latin American production footprint.
ALTA said Palatal would help expand local supply, technical expertise and the range of performance materials available to its customers. The company did not disclose a production-capacity figure, so the scale of any additional output is unspecified.
BASF’s stated rationale is portfolio focus. Ronaldo Freitas Junior, M&A Transaction Lead, BASF Chile, said the sale fits the company’s strategy to focus on its core chemical businesses. He said BASF’s priority during the transition is to ensure “business continuity and a smooth transition.” ALTA Chief Executive Officer Andrew Miller called South America “an important market” for the company.
Palatal will remain part of BASF until completion. During that period, the companies are to operate independently under their transaction agreements, ALTA said. The parties did not disclose the purchase price or an expected closing date, and ALTA named no specific regulatory approvals or timetable.
Poder y Liderazgo also reported that the companies had not provided information on potential staffing changes.
