NewMarket Corp., a major petroleum additive company based in Richmond, Virginia, has entered into an agreement to purchase AMPAC Intermediate Holdings LLC of Cedar City. AMPAC Holdings is the parent company of American Pacific Corp. (AMPAC). The acquisition price is approximately $700 million, a NewMarket release said.
AMPAC is a leading North American manufacturer of critical performance additives used in solid rocket motors for space launch and military defense applications. 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. AMPAC also manufactures Halotron BrX, a clean and environmentally friendly fire extinguishing agent that replaces legacy high ozone-depleting fire extinguishing agents. Founded in 1955, AMPAC operates in Cedar City with approximately 150 full-time employees.
The acquisition of AMPAC expands NewMarket’s exposure to mission-critical, resilient industry sectors, the company said.
NewMarket has been in the manufacturing industry since 1887 and has been in the specialty chemicals business for nearly 100 years.
“We are excited about the opportunity to acquire AMPAC,” said Thomas E. Gottwald, NewMarket’s chairman and CEO. “With consistent cash generation, sustainable competitive advantages in vital markets and an experienced management team, it is a terrific fit with our acquisition and diversification criteria. We view AMPAC as a strategic, national asset with a mission-critical role in global safety, security and space programs, and we believe NewMarket is the right long-term owner for this essential business. We look forward to welcoming the entire AMPAC team into the NewMarket family.”