Can anything shut down the Gold rally?
RICHMOND - NewMarket Corporation (NYSE:NEU), a $7.67 billion market cap company with an "GREAT" financial health rating according to InvestingPro, announced Wednesday it has entered into a definitive agreement to purchase Mars TopCo, LLC, the parent company of Calca Solutions, LLC, from AE Industrial Partners, LP.
Calca, based in Lake Charles, Louisiana, manufactures UltraPure and high purity hydrazine, chemicals used in space propulsion systems for satellites and other space vehicles. The company has supplied high purity hydrazine to the Department of Defense’s Defense Logistics Agency for over 70 years.
The acquisition will strengthen NewMarket’s position in mission critical chemicals while expanding its presence in the defense and aerospace sectors. This marks NewMarket’s second recent acquisition in these industries.
"We are excited about the opportunity to acquire Calca and adding it to the NewMarket family," said Thomas E. Gottwald, NewMarket’s Chairman and CEO, in the press release. "With skilled people and sustainable advantages in vital markets, it is a terrific fit with our acquisition and diversification criteria."
The transaction is expected to close in 2025, subject to customary closing conditions including clearance under the Hart-Scott-Rodino Antitrust Improvements Act. NewMarket plans to finance the acquisition with available cash and borrowings under its revolving credit facility. The company’s strong financial position is evidenced by its healthy current ratio of 2.66 and robust cash flows that sufficiently cover interest payments.
NewMarket Corporation operates through subsidiaries Afton Chemical Corporation, Ethyl Corporation, and American Pacific Corporation, providing chemical additives for petroleum products and specialty materials for aerospace and defense industries.
The financial terms of the transaction were not disclosed in the company’s statement.
In other recent news, NewMarket Corporation disclosed its financial performance for the second quarter of 2025, showing a slight revenue decline compared to the previous year. The company’s earnings per share (EPS) were reported at $2.75, with total revenue amounting to $698.51 million. Despite the drop in revenue, NewMarket remains optimistic about its petroleum additives and specialty materials segments. These recent developments highlight the company’s continued focus on its core business areas. Analyst firms have not provided any upgrades or downgrades in response to these earnings results. Investors will be watching closely to see how NewMarket navigates the challenges and opportunities in its industry. The company’s future performance will likely depend on its ability to capitalize on its optimistic outlook for specific segments.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.