RICHMOND, Va.–(BUSINESS WIRE)–NewMarket Corporation (NYSE: NEU) today announced that it has completed the acquisition of AMPAC Intermediate Holdings, LLC, the ultimate parent company of American Pacific Corporation (AMPAC), for approximately $700 million.
Based in Cedar City, Utah, AMPAC is the leading North American manufacturer of critical performance additives used in solid rocket motors for space launch and military defense applications. AMPAC is qualified on many NASA and Department of Defense programs, and has been serving space launch and national defense programs for more than sixty years. AMPAC also manufactures Halotron BrX, a clean and environmentally friendly fire extinguishing agent that replaces legacy high ozone-depleting fire extinguishing agents. Founded in 1955, AMPAC has one operating facility and approximately 150 full-time employees. The acquisition of AMPAC expands NewMarket’s exposure to mission critical, resilient sectors.
NewMarket has been in the manufacturing industry since 1887, actively operating a specialty chemicals business for nearly 100 years. Our company has a long-term commitment to its people, to safety, to providing innovative solutions for our customers, and to making the world a better place. With extensive research, development and testing expertise, we collaborate with our customers to provide the most advanced products, comprehensive testing programs, and superior technical solutions tailored to their individual needs.
Thomas E. Gottwald, NewMarket’s Chairman and CEO, said: “We are very excited about closing the acquisition of AMPAC and would like to welcome the entire AMPAC team into the NewMarket family. AMPAC’s existing management team is highly qualified, and this was an important factor in our decision to acquire the business. We look forward to working with them and growing together. While we remain committed to our core petroleum additives business, we are also committed to identifying terrific opportunities outside of the petroleum additives business that meet our M&A and diversification criteria. We think the acquisition of AMPAC is a great example of that approach.”
The acquisition closed on January 16, 2024, and was funded by cash on hand and borrowings under our revolving credit facility. AMPAC will be managed as a separate business segment and not a part of our petroleum additives segment. We believe AMPAC will be accretive to net income in 2024.