Nexeo Solutions To Acquire Ultra Chem in Mexico

Nexeo Solutions, a distributor of plastic material and chemicals, enters into an agreement to acquire Mexico based distributor company, Ultra Chem

Mexico: Nexeo Solutions, a United States based chemical and plastic material and chemical distribution company, has announced its plans to acquire Ultra Chem, a Mexico based chemical products distributor.

Ultra Chem is involved in the distribution of products that have application across various industries, including adhesives, home care, food & beverages, plastics, paints & coatings, etc. The acquisition of Ultra Chem would improve Nexeo Solutions’ product portfolio in the chemicals business and give an access to a wide customer base in North America. This agreement is expected to be completed by the second quarter of 2017.  

TechSci Research depicts that the agreement would help Nexeo Solutions to strengthen its position as a leading chemical product supplier in the North America region. Additionally, rising demand for paints & coatings in North America would bolster the demand for pigments for application in the paints & coatings sector.

 According to the recently published report by TechSci Research, “Global Pigments Market By Type (Inorganic, Organic and Specialty), By Application (Paints and Coatings, Plastics, Printing Inks, Construction and Others), Competition Forecast and Opportunities, 2011 – 2021”, global pigments market size is estimated to cross US$ 34 billion by 2021. Segment-wise, inorganic pigments dominated the overall market in 2015, and this trend is anticipated to continue through 2021. Inorganic pigments are widely used in paints & coatings and plastics to provide various functional properties such as heat stabilization, antistatic, flame retardants, anti-block and UV stabilization. In 2015, Asia-Pacific region dominated the global pigments market, owing to huge presence of paints & coatings, plastics, construction and printing ink industries, coupled with increasing investments across diverse industry verticals. Few of the major companies operating in the global pigments market include BASF, Clariant, Huntsman, Tronox, and Lanxess, among others.