Mergers & Acquisitions

November 26, 2022

Wow

Brenntag Is Said to Explore Takeover of Chemicals Rival Univar

Michelle F. Davis, Kiel Porter and Aaron Kirchfeld, Bloomberg News

(Bloomberg) — Germany’s Brenntag SE is exploring a potential acquisition of US rival Univar Solutions Inc. that would cement its position as the world’s biggest chemical distributor and create a company with more than $30 billion in sales, people familiar with the matter said.

The two firms have held preliminary talks about the feasibility of a combination, the people said, asking not to be identified because the matter is private. If discussions go smoothly, Brenntag and Univar may decide as soon as the next couple months whether to proceed with a transaction, the people said.

Brenntag has declined 14% this year, valuing the Essen-based firm at €10.6 billion ($11 billion). Downers Grove, Illinois-based Univar is up more than 9%, giving it a market capitalization of more than $5 billion. 

Deliberations are at a preliminary stage and there’s no certainty they will lead to a transaction, the people said. Representatives for Brenntag and Univar couldn’t immediately comment.

The potential tie-up would rank as a top three transaction in the chemical industry this year and mark a late bright spot for big cross-border dealmaking. Global mergers and acquisitions are down almost 30% this year to $2.4 trillion, according to data compiled by Bloomberg, hurt by economic headwinds and difficult financing markets. 

While Brenntag is a serial acquirer of smaller assets, a Univar takeover would mark its largest purchase by far and be a bold move for Chief Executive Officer Christian Kohlpaintner. The German company unveiled a new growth plan earlier this month to “shape the future of its industry” including organic re-investments and “value creating M&A activities.”

Univar is no stranger to dealmaking itself. It merged with rival Nexeo Solutions Inc. in 2018 and then sold its plastics business in 2019. David Jukes has served as Univar’s CEO since 2018.

A combination would create an opportunity to boost growth and cut costs, but could also face tough antitrust reviews as national governments more closely scrutinize sector tie-ups.

Brenntag reported $20.3 billion of sales over the trailing 12 months, compared with $11.4 billion at Univar, according to data compiled by Bloomberg. The German company is the global market leader in chemical and ingredients distribution with over 17,000 employees in 78 companies, according to its website. 

Univar boasts one of the industry’s largest private transportation fleets as well as a sales force and logistics team that helps connect chemical makers and buyers across sectors.

–With assistance from Eyk Henning and Dinesh Nair.

©2022 Bloomberg L.P.

https://www.bnnbloomberg.ca/brenntag-is-said-to-explore-takeover-of-chemicals-rival-univar-1.1851291

October 28, 2022

Recticel Results and Divestiture Update

Recticel Trading update third quarter 2022

Regulated information, Brussels, 28/10/2022 — 06:59 CET, 28.10.2022

  • Third quarter net sales increase from €107.6 million in 2021 to €153.5 million (+42.7%) in 2022, of which €51.7 million contribution from Trimo, a €8.9 million reduction following the phasing out of sales of chemicals to divested Automotive companies and -0.2% currency effect
  • Year-to-date September net sales increase from € 337.2 million in 2021 to €427.9 million in 2022 (+26.9%), of which €90.3 million contribution from Trimo, and a €39.9 million reduction following the phasing out of sales of chemicals to divested Automotive companies and +0.3% currency effect
  • Closing of the divestment of Engineered Foams expected at the latest by 1Q2023

Olivier Chapelle (CEO Recticel): “The trends observed during the first half of 2022 have continued in the third quarter. The European construction market is extremely challenging with high inflation and is weakening. During the third quarter volumes have been slightly lower than in 2021. Our teams remain focussed on adapting to the changing environment.

The divestment of Engineered Foams is expected to close at the latest by the first quarter of 2023, following the decision on 2 September 2022 by the Competition and Markets Authority in the UK to fast track the approval process.

Our Insulation business is well positioned to respond to the immense challenges of our society: climate change, energy saving, and regional energy independence. Through innovation, organic growth, and M&A activities, we are dedicated to deliver on our growth promise.”

OUTLOOK

In this challenging overall environment, we expect Adjusted Ebitda of our continued business to reach between €60 and €65 million for the full year 2022.

October 28, 2022

Recticel Results and Divestiture Update

Recticel Trading update third quarter 2022

Regulated information, Brussels, 28/10/2022 — 06:59 CET, 28.10.2022

  • Third quarter net sales increase from €107.6 million in 2021 to €153.5 million (+42.7%) in 2022, of which €51.7 million contribution from Trimo, a €8.9 million reduction following the phasing out of sales of chemicals to divested Automotive companies and -0.2% currency effect
  • Year-to-date September net sales increase from € 337.2 million in 2021 to €427.9 million in 2022 (+26.9%), of which €90.3 million contribution from Trimo, and a €39.9 million reduction following the phasing out of sales of chemicals to divested Automotive companies and +0.3% currency effect
  • Closing of the divestment of Engineered Foams expected at the latest by 1Q2023

Olivier Chapelle (CEO Recticel): “The trends observed during the first half of 2022 have continued in the third quarter. The European construction market is extremely challenging with high inflation and is weakening. During the third quarter volumes have been slightly lower than in 2021. Our teams remain focussed on adapting to the changing environment.

The divestment of Engineered Foams is expected to close at the latest by the first quarter of 2023, following the decision on 2 September 2022 by the Competition and Markets Authority in the UK to fast track the approval process.

Our Insulation business is well positioned to respond to the immense challenges of our society: climate change, energy saving, and regional energy independence. Through innovation, organic growth, and M&A activities, we are dedicated to deliver on our growth promise.”

OUTLOOK

In this challenging overall environment, we expect Adjusted Ebitda of our continued business to reach between €60 and €65 million for the full year 2022.

October 10, 2022

Q3 Chemical M&A Transactions

Chemical Deal Results

SellerBuyerBusinessDate
Apollo Concrete CoatingsReVamp (Bertram Capital)concrete coatings3rd Quarter 2022
LanxessHallstarplastic additives feedstock plant in NC3rd Quarter 2022
PerformanX Specialty ChemicalsStepansurfactants – $20s3rd Quarter 2022
KemiraChromaScapedyes and pigments for paper goods3rd Quarter 2022
Goldner HawnDKSHTerra Firma (distribution) – $240s/$360v3rd Quarter 2022
NBD NanotechnologiesHenkelcoatings that reduce fingerprint visibility for glass and impart stain repellency for plastics, textiles and other materials3rd Quarter 2022
GL ChemtecEdgewater Capitalchemistry R&D and scale-up services to support API development, plus advanced materials for drug delivery, medical devices and other life science applications3rd Quarter 2022
ComvestSK Capital (Comvest remains a co-owner)VanDeMark (phosgene chemicals)3rd Quarter 2022
Bergstrom NutritionBalchemmethylsulfonyl-methane3rd Quarter 2022
Edgewater CapitalSeatexChemQuest Chemicals (contract manufacturing)3rd Quarter 2022
SellerBuyerBusinessDate
DSMTechnip EnergiesBiosuccinium® technology3rd Quarter 2022
Arsenal CapitalAmerican SecuritiesMeridian Adhesives3rd Quarter 2022
ClariantGlobal Aminesquaternary ammonium chemicals3rd Quarter 2022
In-Line Finishing SolutionsApplied Adhesives (Arsenal Capital)adhesive and coating solutions for the direct mail and Label Converting markets3rd Quarter 2022
SK CapialChase CorporationNucera Solutions (specialty waxes and polymers) – $250v3rd Quarter 2022
SK CapitalGryphon InvestorsTechmer (color and additive masterbatch for the plastics and fiber industries)3rd Quarter 2022
Groupe DistributionAP Nonweiler (Renovo Capital)Ice Epoxy (DIY resins for hobby and craft projects)3rd Quarter 2022
Vortex CoatingsAP Nonweiler (Renovo Capital)PurEpoxy (concrete coatings)3rd Quarter 2022
St. GobainSK Capital and Edgewater CapitalSt. Gobain Crystals (single scintillation crystals for radiation detection applications, as well as sapphire and garnet substrates for photonics and power electronics applications)3rd Quarter 2022
PromoPlastIMCDdistribution in Mexico and US (resins and compounds for the packaging, footwear, consumer goods, home appliances, automotive and other industrial markets, plus additive masterbatches)3rd Quarter 2022
SellerBuyerBusinessDate
CovestroStratasys3D printing polymers and other materials and patents – $44v + earnout3rd Quarter 2022
AvientHIG Capitaldistribution (thermoplastic and thermoset resins, and polymer colorants and additives) – $950v3rd Quarter 2022
HuntsmanArchroma (SK Capital)Textile Effects (chemicals for textiles, paper, and coating markets) – $772s/$718v3rd Quarter 2022
ClearonSolenissanitizers and disinfectants for recreational water treatment, HI&I and other water treatment applications3rd Quarter 2022
ValvolineAramcoGlobal Products Business (production and distribution of automotive, commercial and industrial lubricants, and automotive chemicals) – $2,650v3rd Quarter 2022
ImerysPlatinum EquityHigh Temperature Solutions (refractory solutions for the iron and steel, thermal and foundry markets) – €801s/€930v3rd Quarter 2022
Gulf Coast ChemicalJNS-SmithChemdistribution3rd Quarter 2022

http://www.chemicaldeals.com/Results.aspx?searchtext=&quarter=3rd+Quarter+2022

October 10, 2022

Q3 Chemical M&A Transactions

Chemical Deal Results

SellerBuyerBusinessDate
Apollo Concrete CoatingsReVamp (Bertram Capital)concrete coatings3rd Quarter 2022
LanxessHallstarplastic additives feedstock plant in NC3rd Quarter 2022
PerformanX Specialty ChemicalsStepansurfactants – $20s3rd Quarter 2022
KemiraChromaScapedyes and pigments for paper goods3rd Quarter 2022
Goldner HawnDKSHTerra Firma (distribution) – $240s/$360v3rd Quarter 2022
NBD NanotechnologiesHenkelcoatings that reduce fingerprint visibility for glass and impart stain repellency for plastics, textiles and other materials3rd Quarter 2022
GL ChemtecEdgewater Capitalchemistry R&D and scale-up services to support API development, plus advanced materials for drug delivery, medical devices and other life science applications3rd Quarter 2022
ComvestSK Capital (Comvest remains a co-owner)VanDeMark (phosgene chemicals)3rd Quarter 2022
Bergstrom NutritionBalchemmethylsulfonyl-methane3rd Quarter 2022
Edgewater CapitalSeatexChemQuest Chemicals (contract manufacturing)3rd Quarter 2022
SellerBuyerBusinessDate
DSMTechnip EnergiesBiosuccinium® technology3rd Quarter 2022
Arsenal CapitalAmerican SecuritiesMeridian Adhesives3rd Quarter 2022
ClariantGlobal Aminesquaternary ammonium chemicals3rd Quarter 2022
In-Line Finishing SolutionsApplied Adhesives (Arsenal Capital)adhesive and coating solutions for the direct mail and Label Converting markets3rd Quarter 2022
SK CapialChase CorporationNucera Solutions (specialty waxes and polymers) – $250v3rd Quarter 2022
SK CapitalGryphon InvestorsTechmer (color and additive masterbatch for the plastics and fiber industries)3rd Quarter 2022
Groupe DistributionAP Nonweiler (Renovo Capital)Ice Epoxy (DIY resins for hobby and craft projects)3rd Quarter 2022
Vortex CoatingsAP Nonweiler (Renovo Capital)PurEpoxy (concrete coatings)3rd Quarter 2022
St. GobainSK Capital and Edgewater CapitalSt. Gobain Crystals (single scintillation crystals for radiation detection applications, as well as sapphire and garnet substrates for photonics and power electronics applications)3rd Quarter 2022
PromoPlastIMCDdistribution in Mexico and US (resins and compounds for the packaging, footwear, consumer goods, home appliances, automotive and other industrial markets, plus additive masterbatches)3rd Quarter 2022
SellerBuyerBusinessDate
CovestroStratasys3D printing polymers and other materials and patents – $44v + earnout3rd Quarter 2022
AvientHIG Capitaldistribution (thermoplastic and thermoset resins, and polymer colorants and additives) – $950v3rd Quarter 2022
HuntsmanArchroma (SK Capital)Textile Effects (chemicals for textiles, paper, and coating markets) – $772s/$718v3rd Quarter 2022
ClearonSolenissanitizers and disinfectants for recreational water treatment, HI&I and other water treatment applications3rd Quarter 2022
ValvolineAramcoGlobal Products Business (production and distribution of automotive, commercial and industrial lubricants, and automotive chemicals) – $2,650v3rd Quarter 2022
ImerysPlatinum EquityHigh Temperature Solutions (refractory solutions for the iron and steel, thermal and foundry markets) – €801s/€930v3rd Quarter 2022
Gulf Coast ChemicalJNS-SmithChemdistribution3rd Quarter 2022

http://www.chemicaldeals.com/Results.aspx?searchtext=&quarter=3rd+Quarter+2022