September 29, 2017
ZINC OXIDE LLC ACQUIRES ZOCHEM…BECOMES THE LARGEST ZINC OXIDE PRODUCER IN NORTH AMERICA WITH 95,000 MT CAPACITY
DICKSON, TENNESSEE —Zinc Oxide LLC, a leading zinc oxide manufacturer, has announced the acquisition of Zochem, a subsidiary of American Zinc Recycling LLC . With this acquisition, the combined company becomes the largest producer of zinc oxide in North America. Headquarters will be at the Zinc Oxide LLC Dickson TN facility.
In 2017, the combined companies will have approximate sales of $250 million (US), and are approved suppliers at 88% of the total North American zinc oxide market volume. Founded in 1933, Zochem has been located in Brampton, Ontario since 1974. Led by a team of industry veterans, Zinc Oxide LLC began in 2013 and has been rapidly establishing itself as a major player in the market. The purchase was for all of Zochem’s manufacturing facilities and assets, including inventory, accounts receivable and product lines. Both the Brampton and Dickson facilities will continue to manufacture with the French Process method exclusively, as this method produces zinc oxide with the most consistent quality and highest purity. Zochem’s extensive domestic and global distribution network will also remain in place.
Russ Robinson, CEO of Zinc Oxide LLC, commented that, “the combination of Zinc Oxide LLC and Zochem has been a long-term goal of our ownership and management. Our team has long admired Zochem for its market breadth, operations and management capabilities.”
According to Senior Vice President of Sales and Marketing, Ed Smith, Zinc Oxide LLC, “The acquisition of Zochem demonstrates our commitment to being the leading supplier in North America of zinc oxide. This move will benefit customers by ensuring that they have a stable source for any grade of the highest possible quality zinc oxide. Our facilities are also strategically located. About 80% of the North American zinc oxide market is within a 500 mile radius of our two plants. That proximity will benefit many customers by reducing shipping costs and transit times.”
Smith continued, “Our team is very charged up about working with our new colleagues at Zochem. The combination of personnel, expanded sales network and facilities gives us the best of the best. With our new depth of capabilities and global reach, the new company has tremendous growth opportunities.”
The combined company will continue to supply zinc oxide to the tire, rubber, chemical, electronics, agricultural, plastics, USP/pharma, ceramics markets, and more.
KeyBanc Capital Markets served as an advisor to Zinc Oxide LLC on this transaction. For more information contact: ZINC OXIDE LLC, 600 Printwood Drive, Dickson, TN 37055. Phone: 615.375.5058 Email: firstname.lastname@example.org www.zn-oxide.com
Best-In-Class Production Facilities – Key Synergies
- Nine muffle furnaces
- Highly efficient “French Process” method
- 95,000 MT capacity – largest in North America
- 700 customers
- World-class North American Distribution network with 15 distributors having 35 strategically-located warehouses.
- Six export agents in Asia, Europe, Caribbean and India
- Management team has 250+ years of combined zinc experience
- Four pelletizers, with a capacity of 36,000 MT
- Geographic footprint allows combined entity to reduce total miles transported for material freight savings, reduced shipping times and reduced carbon footprint.
- Broadest product range of high purity, high & low surface area, USP, pellets