NewMarket Corp. [NEU] on Wednesday said it has acquired AMPAC Intermediate Holdings, LLC for $700 million in cash from the private equity firm AE Industrial Partners
, adding to its portfolio of chemical companies with AMPAC being a manufacturer of performance additives for solid rocket motors used in space launch and defense applications.
NewMarket, which is based in Richmond, Va., said that Utah-based AMPAC “is qualified on many NASA and Department of Defense Programs, and has been serving space launch and national defense programs for more than 60 years.” The company manufactures ammonium and sodium perchlorates.
AMPAC will operate as a separate business segment within NewMarket, which also has a petroleum additives segment and a real estate development business. AMPAC has about 150 employees and manufactures Halotron BrX, an environmentally friendly fire extinguishing agent to replace ozone-depleting agents.
AEI invested in American Pacific (AMPAC) in 2020. AEI’s financial advisers on the deal were Guggenheim Securities and 3Wire Partners.