Cleveland-based Detrex Corp. and its Elco Corp. subsidiary, a specialty chemical supplier, are being acquired by Genoa-based Italmatch, a global specialty additives company.
Detrex, which is thinly traded on the OTCQX market, agreed to a price of $27 a share, which represents anywhere between an 8 percent to 16 percent premium over the closing bid price.
Based on the company’s 1.7 million shares, the deal is worth nearly $46 million.
The proposed merger is expected to close by New Year’s Eve.
Detrex CEO Thomas Mark moved the parent company to Elco’s offices in Cleveland’s Brooklyn neighborhood last summer as part of a plan to focus exclusively on the subsidiary’s products that serve the metalworking fluid, grease, hydraulic oil, slideway lubricant, gear oil, and other industrial lubricant markets.
KeyBanc Capital Markets Inc. is acting as financial adviser to the Detrex board. Clark Hill PLC is the company’s acting as legal adviser.
