Chemtrade Logistics Income Fund (TSX: CHE.UN) is acquiring General Chemical Corp. for $860 million.

Parsippany, N.J.-based General Chemical manufactures inorganic chemical products, including water treatment chemicals, sulphuric acid and specialty chemicals. The deal was originally announced in April.

Chemtrade is a Toronto-based chemicals company that provides sulphuric acid, liquid sulphur dioxide and sodium hydrosulphite.

The target was backed by New York private equity firm American Securities LLC. American Securities bought the company in October 2009 as part of its acquisition of Gen Tek Inc.

Chemtrade says that it plans to fund the deal through the combination of a $1 billion senior-secured loan, consisting of a $600 million term loan and $400 million revolving facility with a $150 million optional accordion feature, plus a $300 million equity raise.

Barclays and Key Bank acted as financial advisers to American Securities, while Weil Gotshal & Manges LLP acted as legal counsel. Jefferies LLC and BMO Capital Markets provided financial advice to Chemtrade on the deal.

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