RIYADH: Saudi chemical giant SABIC has closed a deal to fully acquire US-based Scientific Design, a global leader in licensing chemical process technologies.
Under the deal, the homegrown firm will purchase the 50 percent stake owned by its Swiss-based long-term joint venture partner, Clariant for an undisclosed sum, according to a statement by SABIC.
New Jersey’s Scientific Design, which has been operating as a 50/50 joint venture between SABIC and Clariant for around 20 years, represents a strategic fit for SABIC.
It will help strengthen the company’s position in the specialities market, such as catalysts, allowing it to produce highly differentiated products.
“Catalysts are the foundation of our business. The acquisition of Scientific Design will strengthen our non-cyclical technology-oriented speciality business and move us closer to our long-term goal of becoming a global Specialties leader,” SABIC’s CEO, Yousef Al-Benyan, said, commenting on the move.
“This is a growing global market and the Middle East region alone sources nearly $1.5 billion worth of catalysts per year,” he added.
The transaction is expected to obtain regulatory approvals by the closure of the deal by mid-2022, according to the statement.
