US-focused iodine and natural gas concern Iofina is set to buy versatile Kentucky-based speciality chemical maker H&S Chemicals.

US-focused iodine and natural gas concern Iofina is set to buy versatile Kentucky-based speciality chemical maker H&S Chemicals.

Based in Colorado and quoted on AIM, Iofina is paying $8.5 million cash and issuing 736,314 new shares to buy H&S, which makes and holds a manufacturing patent for materials – incorporating iodine – that have a variety of applications. These range from cosmetics and paints to a soil fumigant approved by the US Environmental Protection Agency to reduce ozone depletion in treating high value crops.

Iofina, whose activities have been principally concentrated in the state of Montana, recently began commercial production of iodine.

The company argues that buying H&S will provide it with a ‘strong strategic platform’ to produce and sell iodine derivatives.