Elementis, through its subsidiary Elementis Holdings, has agreed to buy Brazilian coatings additives company Watercryl Quimica for $24m in cash.
The acquisition will enable Elementis to increase its presence in Latin America and provide a new platform for its specialty products business to accelerate growth in the region, according to the buyer.
Established in 1993, Watercryl supplies additives to the Brazilian coating industries and has manufacturing and technical facilities in Palmital, Sao Paulo, Brazil.
Specialty chemical maker Elementis plans to combine its product portfolios, technical capabilities and market positions along with Watercryl to further accelerate the growth of its products in Brazil and expand sales of Watercryl products beyond Brazil.
David Dutro, Elementis group chief executive, said the acquisition is in perfect sync with the company's strategy to provide an expanded product portfolio to its customers in Latin America.
"Watercryl has a strong presence in Brazil in terms of its product portfolio and manufacturing capabilities and has established an impressive reputation over the past 20 years for exceptional technical service, making it an excellent addition to our Specialty Products Division," Dutro said.
"This is an exciting time for Elementis and we will continue to drive profitable growth both organically and by continuing to look for attractive investment opportunities in the higher growth regions around the world," he added.
The deal is expected to close during the second half of 2012.