Two daughter companies will focus on catalysts and speciality construction chemicals

US speciality chemical manufacturer WR Grace, which emerged from bankruptcy almost exactly a year ago, intends to split into two companies. The split should allow the two segments to allocate investment capital more effectively.

The first new offshoot, temporarily dubbed ‘New Grace’, will focus on process catalysts and speciality silica products. It is expected to generate about $1.8 billion in annual sales, with an approximate 70:30 split between catalyst technologies and materials technologies. The second daughter company, ‘New GCP’, will focus on construction products – like dispersants that improve concrete flow, placement and strength – as well as speciality building materials and packaging technology. New GCP is expected to generate $1.5 billion in annual sales, with construction products making up about 75%, and Grace’s Darex packaging business the other 25%.