Stepan acquires Clariant’s anionic surfactant business in Mexico

Stepan Company is a specialty and intermediate chemical manufacturing company based in Northfield, Illinois. It was established in 1932 by Alfred C. Stepan. Jr. whose grandson F. Quinn Stepan, Jr. is the current chairman and head. The company is the self-proclaimed largest manufacturer of anionic surfactants that find use in several consumer products such as detergents, shampoos, and toothpaste, we come across daily. The company is also a giant in the supply of polyurethane polyols and CASE (coatings, adhesives, sealants, and elastomers). Clariant AG is its swiss counterpart and major competitor, sharing almost the same business domains, only to have founded much later in 1995. Clariant AG is much larger in terms of active employees count. Stepan Company decided to buyout Clariant’s Mexico unit thereby acquiring the anionic surfactant business in Mexico. 

The acquisition includes the business itself and the associated sulfation equipment located in Santa Clara, Mexico. Though financial terms of the transaction are not publicly available, the exchange is expected to close in the third quarter of 2020, subject to regulatory approvals and meeting of certain other requirements. 

"This acquisition supports Stepan's growth strategy in Latin America and enhances our ability to support our customers' growth in the Mexican Consumer and Functional markets for surfactants," said F. Quinn Stepan, Jr., Chairman, President and Chief Executive Officer of Stepan. "We look forward to transitioning customers' supply to Stepan's Ecatepec and Matamoros Mexico facilities over the coming months.", he concluded.

Global surfactant market analysis tells that over 35% of the market itself lies in the Asia-Pacific region owing to the population size, growth, and continuous improvements in the standards of living found there. Clariant AG and Stepan Company are among the huge players in the region. Anionic surfactants are part of the bigger class, namely surfactants, which are surface tension lowering compounds that tend to increase the solubility of grease and dirt particles in water and further help in dislodging them. Anionic surfactants include Linear Alkylbenzene Sulphonate, Secondary Alkane Sulphonate, Alpha Olefin Sulphonate, and Methyl Ester Sulphonate. The anionic surfactant market is set to grow in the coming years, partly due to the COVID 19 pandemic the world is witnessing right now. 

It is to be noted that it was through subsidiaries in Mexico, the Stepan Company was able to come up with an agreement with Clariant (Mexico) S.A. de C.V. and acquire its anionic surfactant manufacturing unit, and hence the business along with it. Stepan Company is known to adopt sustainable methods and carry out huge investments to develop innovative and consumer likable products. It doesn’t come off as a surprise to know that they own R&D plants in 8 nations across 4 continents - North America, South America, Europe, and Asia.