DOW JONES NEWSWIRES
Pine-based chemical maker Arizona Chemical Ltd. filed with the Securities and Exchange Commission to hold an initial public offering of common shares worth $125 million.
The company takes two byproducts of wood pulping from companies like International Paper Co. (IP)--crude tall oil and crude sulfate turpentine--and refines and upgrades them into specialty chemicals for adhesives, inks and other markets.
Last year, the company swung to a profit and posted $767.5 million in sales. As customers lowered their inventory in the recession, Arizona Chemicals sales volumes fell in 2008 and 2009 across most of its businesses. However, it started to see demand improve in the second half of last year. The company said it believes it is well positioned to continue its rebound as demand shifts to recovery.
With proceeds from the offering, Arizona Chemical wants to repay debt, with additional proceeds intended for general corporate purposes. The firm said some of the shares will be sold by one of its shareholders; it won't get any proceeds from the sale of those shares.
It will trade on the New York Stock Exchange under the symbol ARZ.