Jinan Acetate to buy Cerdia from Blackstone for $368M

What's the deal? Jinan Acetate ChemicalDealroom has a profile for this one. Try Dealroom → will acquire a 100% stake in Cerdia HoldingDealroom has a profile for this one. Try Dealroom →, one of the world's top three cellulose acetate tow manufacturers, for about $368 million. The seller is a fund managed by Blackstone.

The terms: The transaction mixes cash and stock, pairing roughly $214 million in cash with the issuance of about 9.95% of new common shares. CFO Chen Chieh-Jui said the cash will come from internal funds, with capital allocated to preserve "financial flexibility for post-merger integration and growth."

Who's Cerdia? The company traces its manufacturing history to 1912, runs an R&D centre in Germany, and employs roughly 1,100 people. Its cellulose acetate products reach markets including eyewear and textiles.

What's the endgame? The deal extends Jinan Acetate Chemical's footprint from a single China production base to a network spanning Asia, Europe, North America, and South America. The combined business will run a dual supply system: Cerdia handling cellulose acetate tow, and Jinan Acetate Chemical managing textile materials and EV battery raw materials.

Chairman Wang Keh-Chang said the deal brings together "two companies with highly complementary strengths," positioning the group closer to customers in key markets.

What could go wrong? The acquisition still needs regulatory approvals and must clear closing conditions. The final consideration will be set before closing under the terms of the share purchase agreement.

The signal: A Taiwan-listed chemical maker buying a century-old European producer from a Blackstone fund shows consolidation in the specialty materials sector, as manufacturers build cross-continental supply chains to sit nearer to global customers.

Read more: finance.biggo.com

Image credit: Kitmondo.com