ALTA Performance Materials is set to strengthen its foothold in South America after signing an agreement with German chemical giant BASF to acquire its Palatal business in Chile.

 

This is in a strategic move that will expand its regional manufacturing capabilities and reinforce its position in the composites market.

 

The proposed acquisition will bring Palatal’s established manufacturing operations in Concón, Chile, under ALTA’s ownership, adding production capacity, technical expertise and an established customer base across key industries, including construction, mining, aquaculture, transportation and industrial manufacturing.

 

The deal marks a significant expansion for ALTA, which will gain its second production operation in Latin America once the transaction is completed. The move is expected to strengthen the company's ability to serve regional customers through local manufacturing, enhanced technical support and an expanded portfolio of performance materials.

 

Palatal specialises in vinyl ester and unsaturated polyester resins, materials widely used in composite applications. Its established presence in the South American market, backed by an experienced workforce and longstanding customer relationships, is expected to provide ALTA with a stronger platform for regional growth.

 

For BASF, the transaction is in line with its strategy to streamline its portfolio and concentrate on its core chemical businesses.

 

Andrew Miller, Chief Executive Officer of ALTA Performance Materials, said: "South America is an important market for ALTA Performance Materials and this agreement is a significant step in strengthening our presence in the region. Palatal is an established business, with a respected regional brand and products, valuable technical expertise and people who understand their customers and the markets they serve. 

 

"Bringing that experience together with our capabilities creates an opportunity to offer customers more, both in the materials we supply and the support we provide. We're looking forward to working with the Palatal team and building on what they've achieved."

 

Ronaldo Freitas Junior, M&A Transaction Lead, BASF Chile, said: "BASF's strategy is to focus its portfolio on its core chemical businesses, and we believe ALTA Performance Materials is the right partner to support Palatal's continued growth. Following the signing of this agreement, our priority is to ensure business continuity and a smooth transition".

 

The companies have indicated that Palatal's operations will continue normally throughout the transition, with business continuity remaining a priority.