Vertellus Buys Pentagon Chemicals UK

Published Date : Nov 05, 2014

Vertellus, the U.S.-based manufacturer of pyridine and pyridine derivative chemicals bought Pentagon Chemicals (Holdings) UK Ltd. Pentagon is a leading manufacturer of specialty and fine chemicals that are used in life sciences industry. With this acquisition Vertellus will be able to expand its manufacturing impact in pharmaceutical and agrochemical sectors. This move will also help Vertellus to support its UK-based Pentagon capacity in chlorination, phosgenation, Grignard and sodium dispersion among others.

In the long-term, this transaction is also expected to help Vertellus Specialty Materials division to earn bigger revenues by around 20%, which will contribute about 13% to the total company revenue. The Pentagon acquisition is part of Vertellus’s move to make its mark in the life sciences sector through strategic acquisitions and organic growth. The life science division earns about 65% of the company’s total revenue. Thus, with this acquisition Vertellus plans to increase its chemical and pharmaceutical business too.

Vertellus CEO, Rich Preziotti the company acquired Pentagon as its expertise in making high value reagents used for making complex intermediate and active molecules. Vertellus was also impressed with Pentagon’s leading market position in the supply of maleic anhydride derivatives, which will further Vertellus’ alkenyl succinic anhydrides (ASA) business.
He further added that this complementary chemical expertise of Pentagon and Vertellus will align manufacturing locations as well. Pentagon also operates at two locations in UK which will enhance Vertellus’ position in UK. With three sites in close proximity, the company will be able to manage and build robust infrastructure and generate wealth.