SI Group, the Niskayuna-based chemical manufacturer with 20 factories worldwide, has been acquired by the private equity firm SK Capital Partners.
Terms of the deal were not disclosed but SI Group has $1 billion in annual sales and 2,800 employees worldwide.
The company was founded by W. Howard Wright in 1906 as Schenectady Varnish Company.
SK Capital is planning to combine SI Group with another company called Addivant that SK Capital has owned since 2013.
“We are excited that SI Group will be joining the SK Capital portfolio of chemicals and pharmaceuticals businesses. SI Group has an excellent fit with the technologies and end markets of several SK Capital businesses,” said Barry Siadat, a co-founder and managing director of SK Capital.
Bloomberg reported back in February that SI Group was exploring a potential sale and that the company could fetch $1.5 billion.
The same story said that SI Group had $180 million in annual operating profit before interest, taxes, depreciation, and amortization.
“SK Capital is a firm known for its sound business practices, deep industry experience, and impressive portfolio of companies in the chemicals sector,” Wallace A. Graham, chairman of SI Group, said in a 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.”
The transaction is expected to close in the second half of 2018.