Archroma owner aims for market consolidation
24/08/2017
Switzerland-based Archroma supplies chemicals to the textile industry and bought BASF’s textile chemicals business in 2015. There were rumours in financial press this year that SK was looking to sell Archroma.
However, the buyout firm claims that since its original investment, an “experienced and talented management team and a cultural change have made Archroma a leader in its sectors”.
As normally happens with private equity investment, SK increased profitability through strategies such as “simplifying corporate structure through flatter organisational structures” and “streamlining product stream”.
Barry Siadat, co-founder of SK Capital, said: "We believe there is a way to develop product innovations by making important investments in new technologies that improve sustainability, increase performance and create new features and benefits that our customers demand.”
Aaron Davenport, a managing director at SK Capital, added: "We believe Archroma is in a strong position to be a leading market consolidator in these fragmented sectors by addressing a number of attractive acquisitions that will replace the existing company platform and technology base. Our new equity investment and recapitalised balance sheet will provide the necessary financial and operational flexibility to further strengthen Archroma's competitiveness and market position."
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