Vertellus completes $200M deal for Dow plant that makes sodium borohydride

Vertellus Specialties completed its acquisition of Dow Chemical's ($DOW) sodium borohydride business in a deal estimated to be more than $200 million as it expands its footprint in the life sciences sector.

It's the second big purchase for Vertellus, which snapped up U.K.-based chemical manufacturer Pentagon Chemicals in November. Terms of that deal weren't disclosed, though the company told the Indianapolis Business Journal the Pentagon acquisition was expected to add about $47 million in revenues.

As part of the Dow deal, Indianapolis-based Vertellus gets a manufacturing facility in Elma, WA. Sodium borohydride is used to make APIs that are key ingredients for producing drugs to treat HIV as well as other medications.

Vertellus CEO Rich Preziotti

"The integration of the SBH (sodium borohydride) business into Vertellus' asset structure enhances the size, scale and scope of our offerings in the high-growth synthesis segment, providing new tools to serve global pharma manufacturers' needs," Rich Preziotti, Vertellus' chief executive, said in a statement.

When the deal was announced by Dow in December it said the sale to Vertellus was one of two recent divestitures by the chemical giant that combined amounted to $225 million. A Dow spokeswoman told the IBJ that the purchase of the sodium borohydride business was "the bulk" of the $225 million.

Vertellus was bought in 2007 by Wind Point Partners, a Chicago-based private equity firm.

- see the Vertellus release
- check out the IBJ story