Companies combine to create a leading specialty chemicals player

Two US specialty chemical players, Reilly Industries and Rutherford Chemicals, have combined to form a new business focused on three specific areas, including the personal care market.

Vertellus combines the strength of the two specialty chemical players to provide a number of product areas that will also serve the agricultural, nutritional, pharmaceutical and performance materials market.

The new company says that its aim will be to become the technology leader in a number of chemical manufacturing and formulation processes, with a majority of its annual revenue derived from products with leading global market positions.

Robert McNeeley, chairman of Vertellus said: "The leadership of both Reilly and Rutherford will combine to form the executive team of Vertellus, ensuring continuity in both operations and customer relationships. We will continue to drive growth as we always have - through building customer value and a dedication to technological innovation."

McNeeley was formerly President and CEO of Reilly Industries, while the new executive team has significant experience in the specialty and fine chemicals industry.

The company will also be focusing on the growing market for natural and environmentally friendly products, a fact that is reflected in the name of the company, specific trends that it will be particularly eager to tap into in the personal care sector, given the huge demand for natural-based products.

Timothy Zappala president and CEO of Vertellus and former CEO of Rutherfords, even hinted at a further focus on health-orientated products, with a specific focus on aging and key population growth, two factors that have given rise to one of the personal care industry's biggest growth categories - anti-aging products.

Its combined resources mean that Vertellus will hold the number one global market position in the production of pyridine and picolines, specialty pyridine derivatives, castor oil derivatives, polymer additives and systems, DEET, citrate polymer additives and systems and sulfone monomers.

It is also now the second largest global producer of Vitamin B-3. Vertellus' joint venture in Nantong China makes it the only fully operational, commercial-scale producer of many pyridine specialties in China, positioning the company favorably to serve the growing Chinese market.

Zappala added that the company would also be developing new product lines that will include the ZePure oral care products, and HEMA PC Bio-compatible Polymers.