Mergers & Acquisitions
August 3, 2023
Foamation Has Been Sold
Green Bay Packers Acquires Foamation, Maker of PU foam Cheesehead Hats
The Green Bay Packers announced today the organization has acquired Foamation Inc., the company responsible for creating the original Cheesehead® hat, along with a wide variety of specialty foam products.
Foamation, based in Milwaukee, was founded by Ralph Bruno in 1987. Bruno first wore the Cheesehead hat to a Brewers game, after having the idea for the unique headwear while reupholstering his mother’s couch and seeking an opportunity to poke fun at the sports fans south of Wisconsin. He burned holes in the foam to give it a Swiss cheese-like appearance and painted it yellow to look like cheddar.
The one-of-a-kind hat turned out to be big hit while Bruno was tailgating before the game, and a new tradition began; the Cheesehead has since become a universally recognized symbol for Wisconsinites and Packers fans.
After more than 30 years of growing Foamation, which offered the hats and a variety of other specialty cheese-like foam products, the Brunos were ready to shift gears. Since the Packers were already the largest purchaser of their products – in order to keep them stocked in the Packers Pro Shop – the couple approached the team to determine the next steps for Foamation.
With an already beloved, iconic brand like the Cheesehead, the Packers were excited about the opportunity to continue growing the brand.
“The popular Cheesehead hats have come to represent Packers fans all over the world and we’re excited to officially welcome this special brand to the Packers organization,” said Packers vice president of marketing and fan engagement Gabrielle Dow. “We’re looking forward to building upon the legacy the Bruno family has created over the years and offering our fans even more Cheesehead items to love.”
The Packers have sold Foamation’s products in the Packers Pro Shop for several years. All Cheesehead hats and related foam products will continue to be manufactured in Wisconsin.
“After many years of working with family and friends to build the Cheesehead brand, we are pleased to pass it on to the Green Bay Packers,” said Ralph Bruno. “We have had a very special relationship with the Packers over the years, and my wife, Sue, and I are both very excited about what the Packers can do with the Cheesehead going forward.”
A variety of Cheesehead products are currently available in the Packers Pro Shop in-store and online at packersproshop.com, and the team is exploring several opportunities to grow the brand and create new products for fans to enjoy this coming season.
https://www.bizjournals.com/milwaukee/news/2023/07/24/green-bay-packers-acquire-cheesehead-maker.html
August 1, 2023
MDI Restructuring in China
BASF, Huntsman, and Chinese partners agree to petrochemical deal in China
MOSCOW (MRC) — BASF and Huntsman together with their Chinese partner companies – Shanghai Hua Yi (Group Company), Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd. and Shanghai Chlor-Alkali Chemical Co., Ltd. – announce the planned separation of their joint MDI (diphenylmethane diisocyanate) production at Shanghai Lianheng Isocyanate Co., Ltd. (SLIC), said Hydrocarbonprocessing.
Going forward, the companies will operate the two MDI plants located at the site in Caojing, China independently. Huntsman together with Shanghai Chlor-Alkali Chemical Co., Ltd, and BASF together with Shanghai Hua Yi (Group Company) and Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd will each take over one of the MDI plants.
“The SLIC joint venture has been an important partnership to establish MDI production in China as one of the pioneers at the Shanghai Chemical Park,” said Ramkumar Dhruva, President Monomers division at BASF. “The new organizational setup will allow BASF and our partners Shanghai Hua Yi and Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd. to further develop our MDI operations in Shanghai while serving the demand of our customers in the region even more effectively.”
“Through the production of crude MDI in the SLIC joint venture over almost 20 years, Huntsman together with its partner, Shanghai Chlor-Alkali Chemical Co., Ltd, has been able to successfully build its polyurethanes business in China. As we move to integrate these assets into our downstream operations, we will be even better positioned to meet the future innovation and growth needs of our customers,” said Tony Hankins, President of Huntsman Polyurethanes.
Huntsman, together with Shanghai Chlor-Alkali Chemical Co., Ltd, will own and operate the original MDI plant that started commercial production in 2006, along with a hydrogen chloride recycling unit for the production of chlorine, a precursor for MDI, that was added in 2018. BASF will own and operate the MDI plant that was added in 2018, including the manufacturing facilities for the precursors aniline and nitrobenzene. All employees currently employed in the Joint Venture will be transferred to the respective organizations.
The new operational setup is in preparation and is expected to become effective during the fourth quarter of 2023, and is subject to pending regulatory authority approvals, permits and other customary closing conditions.
In addition to the plant in Caojing, BASF operates MDI production sites in Chongqing, China as well as in Yeosu, South Korea; Antwerp, Belgium; and Geismar, Louisiana. Following the restructuring of the joint venture, BASF’s global production capacity for MDI will total around 1.9 million tons.
Huntsman operates world-scale MDI production and splitting facilities in Rotterdam, the Netherlands, and Geismar, Louisiana, in addition to its Caojing facilities.
MDI is an important precursor in the manufacture of polyurethanes – versatile polymers that are used in the automotive and construction industries, in appliances such as refrigerators, and in footwear.
We remind, BASF and Zhejiang Guanghua Technology Co.,Ltd. (KHUA) have signed a Letter of Intent (LoI) for the supply of Neopentyl Glycol (NPG) from BASF’s Zhanjiang Verbund site to KHUA. This agreement marks a significant milestone in the long-term partnership between both parties. KHUA, a reputed manufacturer of saturated polyester resins for the powder coatings industry in China, is planning to build a 100 kilotons per annum (KT/a) production plant for high-end powder coatings resins in Donghai Island, Zhanjiang Economic & Technological Development Zone, where BASF is building a world-scale NPG plant with an annual production capacity of 80,000 metric tons.
August 1, 2023
Apollo Completes Univar Solutions Acquisition
Univar Solutions Completes Transaction with Apollo Funds
08/01/2023
Shareholders Receive $36.15 Per Share in Cash
DOWNERS GROVE, Ill. and NEW YORK, Aug. 1, 2023 /CNW/ — Univar Solutions Inc. (“Univar Solutions” or the “Company”) and Apollo (NYSE: APO) today announced that Apollo Funds have completed the previously announced acquisition of the Company, which includes a minority investment from a wholly owned subsidiary of the Abu Dhabi Investment Authority. The Company will continue to operate under the Univar Solutions name and brand and maintain its global presence.
Univar Solutions Completes Transaction with Apollo Funds
David Jukes, president and chief executive officer of Univar Solutions, said, “The completion of this transaction begins the next chapter for Univar Solutions as we further enhance our position as a leading global chemical and ingredients solutions provider with enhanced flexibility to explore growth opportunities for the benefit of customers, suppliers, employees, and industry alike. I couldn’t be more pleased to be in such an advantaged position due to our broad product offering and enhanced presence in target growth end markets, award winning customer experience, leading digital tools, and expanded suite of service capabilities.”
Apollo Private Equity Partner Sam Feinstein said, “We are excited to partner with David and the talented Univar Solutions team to build on the Company’s strong foundation and track record of innovation, leveraging our extensive industry experience. We have strong conviction in Univar’s potential and look forward to embarking on a number of exciting initiatives to help accelerate the Company’s growth.”
Transaction Details
Pursuant to the terms of the transaction, an affiliate of the Apollo Funds acquired all of the outstanding shares of Univar Solutions stock. Shareholders are entitled to receive $36.15 in cash for each share of Univar Solutions (UNVR) common stock owned. As a result of the transaction completion, Univar Solutions’ common stock no longer trades on the New York Stock Exchange.
July 23, 2023
Everchem Acquires Specialty Products International
Everchem Acquires Specialty Products International
Everchem, LLC, a successful and expanding North American specialty chemical supplier providing formulated solutions and raw materials for the urethane and epoxy markets, has acquired Specialty Products International (SPI).
SPI has an extensive product catalog in the urethane specialty additives market. The official announcement from Everchem, LLC was made on July 24 at 8AM EDST. The move to acquire Specialty Products International first started in September 2022 as both company principles – David Patten, CEO / CFO Everchem and Ed Galla, President of Specialty Products International – realized that SPI’s unique product line of solution-based catalyst and additive technologies aligned well with Everchem’s commercial strategies.
Ed Galla expressed: “Never did I realize when SPI started up 30 years ago, with our objectives of improving customers’ operations and helping customers capitalize on opportunities, that SPI would be as large and successful as it is today. Based on SPI’s positions in polyurethane additives and specialty chemicals, Everchem is a natural partner to continue and expand on the ‘SPI . . . Dedicated to our Customers’ tradition under the Everchem name. Everchem will be supplying the same products, technologies, and services that SPI’s customers have been accustomed to for decades.”
The Everchem strategy for growth continues to build momentum with our customer centric specialty chemical supplier model. “The acquisition of the SPI business is part of our larger goals bringing highly valued, solutions based chemical technology to the vast polyurethane markets,” as detailed by Del Felter, Vice President Market and Business Development. “The SPI additive technologies product line coupled with their unique applications expands the Everchem customer base and provides additional product placement opportunities for our existing customers.”
The deal was signed June 26 as both companies strive to make a seamless transfer of assets during the next 60 days. Details regarding the deal’s specifics were not provided to the media.
July 18, 2023
Adnoc Bid for Covestro Increased
Adnoc Is Said to Increase Covestro Takeover Bid to €11 Billion
Aaron Kirchfeld, Dinesh Nair and Eyk Henning, Bloomberg News
Officials arrive for a tour of the ADNOC Ruwais refinery and petrochemical complex in Al Ruwais, United Arab Emirates. Photographer: Christophe Viseux/Bloomberg , Photographer: Christophe Viseux/Bloomberg
(Bloomberg) — Abu Dhabi National Oil Co. has increased its takeover offer for Covestro AG to about €11 billion ($12.4 billion) as it seeks to convince the German chemical producer to enter talks, people familiar with the matter said.
Adnoc’s latest proposal values Covestro at about €57 per share, up from its first informal bid of around €55, the people said, asking not to be identified because the information is private. The state-backed firm voiced confidence in Covestro’s strategy and management, according to the people.
Shares of Covestro jumped 5.6% in late Frankfurt trading to close at €50.30, the highest level since February 2022.
Last month, Leverkusen-based Covestro rejected Adnoc’s earlier proposal as too low, people familiar with the matter said at the time. Covestro also raised questions around Adnoc’s plans for its specialties operations.
Adnoc has tried to address Covestro’s concerns about its offer, including over how it would help the German company’s management develop the specialty chemical operations, according the people. If negotiations are entered, there could be scope for further increases in Adnoc’s bid.
Deliberations are ongoing, and it’s unclear how Covestro will respond to the latest proposal. Representatives for Adnoc and Covestro declined to comment.
Adnoc, which produces almost all the oil in the United Arab Emirates, plans to invest $150 billion to expand production capacity for crude, natural gas and chemicals.
It’s also in separate talks with Austria’s OMV AG about a potential merger of two petrochemical firms they back, Borouge Plc and Borealis AG.
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