A specialty chemicals group based in Germany has entered into an agreement to acquire the Silberline Group, which is headquartered in Hometown.

“The acquisition is further proof that we are sustainably implementing our strategy of generating value-creating growth through targeted acquisitions,” said Martin Babilas, chief executive officer of Altana, based in Wesel, Germany.

The Altana Group is a global leader in true specialty chemicals and has more than 50 production facilities and more than 60 service and research laboratories worldwide. It employs more than 8,000 people and had sales of more than $3 billion in 2022. The Eckart division will be overseeing Silberline.

Silberline specializes in developing and manufacturing effect pigments for a number of applications, ranging from automotive coatings and printing inks to plastics, protective coatings and packaged consumer goods.

The local company was founded in 1945 and employs more than 450 people around the world. In 2022, the company achieved sales of approximately $80 million. The company was started by Ernest Scheller Sr., and moved to Pennsylvania in 1963. Once based in Lansford, the family-owned operation moved to Hometown.

Lisa Jane Scheller, Ernest’s granddaughter, has served as president and CEO of the operation. Scheller, who founded Hope & Coffee in Tamaqua, made an unsuccessful bid for U.S. representative.

State Sen. David Argall, Carbon-Schuylkill, commented on the acquisition. “For generations, Silberline has been a key major employer that created many family-sustaining jobs here. The Scheller family has left an inspiring impact on our area through their philanthropic efforts at Hope and Coffee, Lehigh Carbon Community College, and more. I look forward to meeting with the new owners soon to review their local plans for the future.”

With the move, Altana is strategically expanding its Eckart effect pigments division and strengthening its regional presence, particularly in North America and Asia.

“The local research and production capacities of Silberline and Eckart complement each other perfectly. The merger will enhance our ability to respond flexibly to regional customer needs and further optimize our service quality,” said Dr. Christian Przybyla, president of Eckart.

Gary Karnish, chief executive officer of Silberline, said the acquisition of Silberline by Eckart will create new potential.

“Together, we can more intensively drive the development of sustainable product innovations, benefiting both customers and employees,” Karnish said.

Grace Matthews Inc., a Milwaukee-based investment bank, has served as exclusive financial adviser to Silberline. It provides merger, acquisition, and corporate finance advisory services to companies across the chemical and material science value chain.

“Grace Matthews has more than 25 years of experience in chemicals and material science transactions, and the combination of Silberline and Eckart is as strong of a strategic fit as we’ve come across,” said Andrew Cardona, director of Grace Matthews. “We are pleased to have advised Silberline on a successful outcome for all company stakeholders.”

The completion of the transaction is still subject to customary closing conditions, and both parties have agreed not to disclose the purchase price.