(ALB - Free Report
) recently announced the acquisition of Cambridge, UK-based Cambridge Chemical Company, Ltd. Cambridge Chemical is a laser technology player in the production of high purity metal organic chemicals.
The acquisition broadens Albemarle’s foothold in the electronic materials market. While Albemarle’s shares fell roughly 1.3% following the news release due to broader market decline, the deal holds significant potential for the company.
The terms and conditions of the deal were not revealed. Albemarle will keep producing specialty products at Cambridge Chemical's existing facilities in the UK.
Albemarle's products in the electronic materials market, which include the light emitting diodes (LED), semiconductor, organic light emitting diodes (OLEDs), will benefit from Cambridge Chemical's technology. The acquisition will also help Albemarle with a number of R&D and distribution synergies so as to provide best-in-class products and services.
The acquisition will enable Albemarle to add Cambridge Chemical’s DEOX technology to its existing PureGrowth portfolio to meet customer requirements in the fast growing electronics market with a broad spectrum of solutions. Along with this, it will also add Cambridge Chemical’s wide distribution channels and expertise to Albemarle’s list of existing assets, thus offering greater value to the customers.
Albemarle’s electronic materials business is built upon extensive expertise in organometallic chemistry, effectiveness in backward integration of key raw materials and holds good reputation for quality. This business unit was launched by Albemarle in Jan 2012. Since then, Albemarle has launched four products that are used in metal organic chemical vapor deposition (MOCVD). The products were launched within the company’s PureGrowth portfolio.
Albemarle is a leading maker of specialty chemicals for consumer electronics, petroleum refining, utilities, packaging, construction, automotive/transportation, pharmaceuticals, crop protection, food-safety and custom chemistry services.
Albemarle retains a Zacks Rank #4 (Sell).
Other companies in the chemical industry having favorable Zacks Rank are Air Products & Chemicals Inc.
(APD - Free Report
) , BASF SE
(BASFY - Free Report
) and FMC Corp.
(FMC - Free Report
) . All of them retain a Zacks Rank #2 (Buy).