NewMarket acquires AMPAC for ~$700M, expands into defense/space rocket motor additives

NEWMARKET CORP

Purchase price ~$700M; expected close Q1 2024; subject to HSR antitrust clearance.
AMPAC is leading North American manufacturer of solid rocket motor performance additives, qualified on NASA and DoD programs.
Financing via available cash and revolver; no shareholder vote required.
AMPAC has one facility in Cedar City, UT, ~150 employees; founded 1955.
Chairman/CEO Thomas Gottwald calls AMPAC a strategic national asset and a terrific fit with NewMarket's diversification criteria.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

NEWMARKET CORP entered into Securities Purchase Agreement with Coyote Ultimate Holdings, LLC valued at approximately $700 million (effective 2023-12-01).

Action: entry
Agreement: asset purchase
Counterparty: Coyote Ultimate Holdings, LLC
Value: approximately $700 million
Effective: 2023-12-01

Exact text from the filing

On December 1, 2023, NewMarket Corporation, a Virginia corporation (the “Company”), entered into a Securities Purchase Agreement (the “Purchase Agreement”) with Coyote Ultimate Holdings, LLC, a Delaware limited liability company (“Coyote”), and AMPAC Intermediate Holdings, LLC, a Delaware limited liability company (“Holdings”), to acquire from Coyote all issued and outstanding ownership units of Holdings, the ultimate parent company of American Pacific Corporation (“AMPAC”), for approximately $700 million, subject to a purchase price adjustment for customary items, including working capital, cash, debt and transaction expenses (the “Acquisition”).

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NEWMARKET CORP filing history →

Source: SEC EDGAR

accession 0001193125-23-288480

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