Cedar City's American Pacific sold to NewMarket Corp. for $700 million

Cedar City’s American Pacific Corp., a producer of highly specialized chemicals through proprietary processes for use in missile defense, space launch, pharmaceutical and fire suppression applications, has been sold to NewMarket Corp. of Richmond, Virginia. AE Industrial Partners LP (AEI), a private equity firm specializing in aerospace, national security and industrial services, was the previous owner and sold American Pacific through its affiliate company, AMPAC Intermediate Holdings LLC. The sale price was reported as $700 million.

Founded in 1955, American Pacific produces performance additives utilized in solid rocket motors for use in space launch and military defense. American Pacific is qualified to work on several NASA and Department of Defense programs, serving these organizations for over 60 years. American Pacific also manufactures Halotron BrX, a clean and environmentally friendly fire extinguishing agent that replaces existing legacy high ozone-depleting fire extinguishing solutions.

“AEI has been a first-rate investment partner to our business over the past three years, providing pivotal guidance, industry knowledge and resources that have helped us continue our growth trajectory and evolve our offerings,” said Hal Murdock, CEO of American Pacific. “As we open our next chapter, we are excited about what we have been able to achieve together.”

“Since investing in American Pacific in 2020, we have worked with the management team to support their growth strategy and their mission to deliver critical solutions that empower U.S. national security and space exploration,” said Kirk Konert, managing partner at AEI. “It has been gratifying to help the company strengthen its leadership position and support of customers while delivering a positive outcome for our investors. We wish the American Pacific team continued success as they move forward to their next stage.”

Thomas E. Gottwald, NewMarket’s chairman and CEO, said, “We are very excited about closing the acquisition of AMPAC and would like to welcome the entire AMPAC team into the NewMarket family. AMPAC’s existing management team is highly qualified, and this was an important factor in our decision to acquire the business. We look forward to working with them and growing together.”

The acquisition closed on Jan. 16. AMPAC will be managed as a separate business segment and not a part of NewMarket’s petroleum additives segment.