SCHENECTADY — SI Group is set to be sold to a private investment firm, under a deal announced Friday.
The Schenectady-based chemical firm, previously known as Schenectady International and founded in the Electric City in 1906, has more than 2,800 employees working in 20 manufacturing facilities worldwide. The firm sees more than $1 billion in annual sales.
SK Capital Partners is a private investment firm “focused on the specialty materials, chemicals and pharmaceuticals sectors,” according to a prepared statement announcing the purchase agreement.
Under the terms of that agreement, SK Capital will combine SI Group and Addivant, another specialty chemical manufacturer, once the sale is complete, according to the company statement issued Friday.
SK has owned Addivant since 2013, and the purchase of SI Group is expected to be complete by the end of the year.
“SK Capital is a firm known for its sound business practices, deep industry experience and impressive portfolio of companies in the chemicals sector,” said SI Group Chairman Wallace A. Graham, in a prepared statement. “We are thrilled by the prospect of SI Group joining SK Capital, as it will enhance the company’s performance additives and intermediates business in the plastic, oil and gas, pharmaceutical, and rubber sectors. We expect to see great things in the years ahead.”
SI Group started as Schenectady Varnish Co. in 1906, when W. Howard Wright, a General Electric chemist, decided to start his own business.
Other terms of the buyout, including the price, were not disclosed on Friday.
“We are excited that SI Group will be joining the SK Capital portfolio of chemicals and pharmaceuticals businesses,” said SK Capital co-founder and Managing Director Barry Siadat, in a prepared statement. “SI Group has an excellent fit with the technologies and end markets of several SK Capital businesses, including Addivant in additives, Noramco in the area of pain management pharmaceuticals, and TPC Group in building block chemicals for certain SI Group products.
“These technology and market connections will enhance and accelerate the continued growth and transformation of SI Group. Additionally, by combining the complementary strengths of SI Group and Addivant, we will be creating a global technology and industry leader in plastic, lubricant, oilfield, and rubber additives.”