US-based SI Group (Schenectady, New York; www.siigroup.com), part of private equity group SK Capital (New York, New York; www.skcapitalpartners.com), has agreed to sell the majority of its global industrial resin businesses as well as its speciality business in Brazil to ASK Chemicals (Hilden / Germany; www.ask-chemicals.com). Financial terms were not revealed.

The transaction, which is expected to close later in 2019, comprises SI’s industrial resins products and manufacturing sites in Rio Claro / Brazil, Ranjangaon, Maharashtra / India and Johannesburg and Durban / South Africa, together with licensed technology and worldwide multiple tolling agreements.

SI will carve out related businesses at the four sites, including the manufacture of rubbers, adhesives and oilfield products, as well as foundry products in Brazil. The company will also operate tolling agreements with ASK, one of the world’s leading suppliers of foundry chemicals and formerly a joint venture between Clariant (Muttenz / Switzerland; www.clariant.com) and Ashland (Covington, Kentucky / USA; www.ashland.com).

Commenting on the deal, ASK’s CEO Frank Coenen, said the buy allows the German company “to take a first step in building a phenolic industrial resins business, an attractive market with promising growth opportunities.” ASK Chemicals belongs to private equity firm Rhône Capital (New York, New York; www.rhonegroup.com). SI president and CEO David Bradley added that the sale provides the US group with the opportunity to reshape its portfolio and realign its focus around performance additives.