Lockport chemical manufacturer VanDeMark Chemical is being reunited with its former sister company in Hungary.
VanDeMark has acquired Framochem Krt, a Hungarian company that makes phosgene products, in a deal that reunites two businesses that once were owned by a state-owned French company, SNPE.
The acquisition will give VanDeMark access to a broader customer base and combine a pair of phosgene-based product lines that company officials said are complementary. VandeMark’s main focus is on the custom side of the market, while Framochem’s main strength is in the catalog chemical business.
“This acquisition combines a North American leader with a European leader to give us greater size and scale across more geographies,” said Michael Kucharski, VanDeMark’s chief executive officer.
VanDeMark has about 90 employees at its plant on North Transit Road, while Framochem has more than 100 employees. Framochem had about $36 million in sales last year and an operating profit of about $7.8 million. Framochem’s sales have increased by more than 20 percent since the company was acquired by German-based Isochem in 2010.
The combined company will be one of the world’s largest independent producers of phosgene-based products, with a total capacity of 22,000 tons a year. The terms of the acquisition were not disclosed, but VanDeMark executives said the company is raising additional capital.