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
Seller | Buyer | Business | Date |
---|---|---|---|
Apollo Concrete Coatings | ReVamp (Bertram Capital) | concrete coatings | 3rd Quarter 2022 |
Lanxess | Hallstar | plastic additives feedstock plant in NC | 3rd Quarter 2022 |
PerformanX Specialty Chemicals | Stepan | surfactants – $20s | 3rd Quarter 2022 |
Kemira | ChromaScape | dyes and pigments for paper goods | 3rd Quarter 2022 |
Goldner Hawn | DKSH | Terra Firma (distribution) – $240s/$360v | 3rd Quarter 2022 |
NBD Nanotechnologies | Henkel | coatings that reduce fingerprint visibility for glass and impart stain repellency for plastics, textiles and other materials | 3rd Quarter 2022 |
GL Chemtec | Edgewater Capital | chemistry R&D and scale-up services to support API development, plus advanced materials for drug delivery, medical devices and other life science applications | 3rd Quarter 2022 |
Comvest | SK Capital (Comvest remains a co-owner) | VanDeMark (phosgene chemicals) | 3rd Quarter 2022 |
Bergstrom Nutrition | Balchem | methylsulfonyl-methane | 3rd Quarter 2022 |
Edgewater Capital | Seatex | ChemQuest Chemicals (contract manufacturing) | 3rd Quarter 2022 |
Seller | Buyer | Business | Date |
---|---|---|---|
DSM | Technip Energies | Biosuccinium® technology | 3rd Quarter 2022 |
Arsenal Capital | American Securities | Meridian Adhesives | 3rd Quarter 2022 |
Clariant | Global Amines | quaternary ammonium chemicals | 3rd Quarter 2022 |
In-Line Finishing Solutions | Applied Adhesives (Arsenal Capital) | adhesive and coating solutions for the direct mail and Label Converting markets | 3rd Quarter 2022 |
SK Capial | Chase Corporation | Nucera Solutions (specialty waxes and polymers) – $250v | 3rd Quarter 2022 |
SK Capital | Gryphon Investors | Techmer (color and additive masterbatch for the plastics and fiber industries) | 3rd Quarter 2022 |
Groupe Distribution | AP Nonweiler (Renovo Capital) | Ice Epoxy (DIY resins for hobby and craft projects) | 3rd Quarter 2022 |
Vortex Coatings | AP Nonweiler (Renovo Capital) | PurEpoxy (concrete coatings) | 3rd Quarter 2022 |
St. Gobain | SK Capital and Edgewater Capital | St. 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 |
PromoPlast | IMCD | distribution 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 |
Seller | Buyer | Business | Date |
---|---|---|---|
Covestro | Stratasys | 3D printing polymers and other materials and patents – $44v + earnout | 3rd Quarter 2022 |
Avient | HIG Capital | distribution (thermoplastic and thermoset resins, and polymer colorants and additives) – $950v | 3rd Quarter 2022 |
Huntsman | Archroma (SK Capital) | Textile Effects (chemicals for textiles, paper, and coating markets) – $772s/$718v | 3rd Quarter 2022 |
Clearon | Solenis | sanitizers and disinfectants for recreational water treatment, HI&I and other water treatment applications | 3rd Quarter 2022 |
Valvoline | Aramco | Global Products Business (production and distribution of automotive, commercial and industrial lubricants, and automotive chemicals) – $2,650v | 3rd Quarter 2022 |
Imerys | Platinum Equity | High Temperature Solutions (refractory solutions for the iron and steel, thermal and foundry markets) – €801s/€930v | 3rd Quarter 2022 |
Gulf Coast Chemical | JNS-SmithChem | distribution | 3rd Quarter 2022 |
http://www.chemicaldeals.com/Results.aspx?searchtext=&quarter=3rd+Quarter+2022
October 10, 2022
Q3 Chemical M&A Transactions
Chemical Deal Results
Seller | Buyer | Business | Date |
---|---|---|---|
Apollo Concrete Coatings | ReVamp (Bertram Capital) | concrete coatings | 3rd Quarter 2022 |
Lanxess | Hallstar | plastic additives feedstock plant in NC | 3rd Quarter 2022 |
PerformanX Specialty Chemicals | Stepan | surfactants – $20s | 3rd Quarter 2022 |
Kemira | ChromaScape | dyes and pigments for paper goods | 3rd Quarter 2022 |
Goldner Hawn | DKSH | Terra Firma (distribution) – $240s/$360v | 3rd Quarter 2022 |
NBD Nanotechnologies | Henkel | coatings that reduce fingerprint visibility for glass and impart stain repellency for plastics, textiles and other materials | 3rd Quarter 2022 |
GL Chemtec | Edgewater Capital | chemistry R&D and scale-up services to support API development, plus advanced materials for drug delivery, medical devices and other life science applications | 3rd Quarter 2022 |
Comvest | SK Capital (Comvest remains a co-owner) | VanDeMark (phosgene chemicals) | 3rd Quarter 2022 |
Bergstrom Nutrition | Balchem | methylsulfonyl-methane | 3rd Quarter 2022 |
Edgewater Capital | Seatex | ChemQuest Chemicals (contract manufacturing) | 3rd Quarter 2022 |
Seller | Buyer | Business | Date |
---|---|---|---|
DSM | Technip Energies | Biosuccinium® technology | 3rd Quarter 2022 |
Arsenal Capital | American Securities | Meridian Adhesives | 3rd Quarter 2022 |
Clariant | Global Amines | quaternary ammonium chemicals | 3rd Quarter 2022 |
In-Line Finishing Solutions | Applied Adhesives (Arsenal Capital) | adhesive and coating solutions for the direct mail and Label Converting markets | 3rd Quarter 2022 |
SK Capial | Chase Corporation | Nucera Solutions (specialty waxes and polymers) – $250v | 3rd Quarter 2022 |
SK Capital | Gryphon Investors | Techmer (color and additive masterbatch for the plastics and fiber industries) | 3rd Quarter 2022 |
Groupe Distribution | AP Nonweiler (Renovo Capital) | Ice Epoxy (DIY resins for hobby and craft projects) | 3rd Quarter 2022 |
Vortex Coatings | AP Nonweiler (Renovo Capital) | PurEpoxy (concrete coatings) | 3rd Quarter 2022 |
St. Gobain | SK Capital and Edgewater Capital | St. 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 |
PromoPlast | IMCD | distribution 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 |
Seller | Buyer | Business | Date |
---|---|---|---|
Covestro | Stratasys | 3D printing polymers and other materials and patents – $44v + earnout | 3rd Quarter 2022 |
Avient | HIG Capital | distribution (thermoplastic and thermoset resins, and polymer colorants and additives) – $950v | 3rd Quarter 2022 |
Huntsman | Archroma (SK Capital) | Textile Effects (chemicals for textiles, paper, and coating markets) – $772s/$718v | 3rd Quarter 2022 |
Clearon | Solenis | sanitizers and disinfectants for recreational water treatment, HI&I and other water treatment applications | 3rd Quarter 2022 |
Valvoline | Aramco | Global Products Business (production and distribution of automotive, commercial and industrial lubricants, and automotive chemicals) – $2,650v | 3rd Quarter 2022 |
Imerys | Platinum Equity | High Temperature Solutions (refractory solutions for the iron and steel, thermal and foundry markets) – €801s/€930v | 3rd Quarter 2022 |
Gulf Coast Chemical | JNS-SmithChem | distribution | 3rd Quarter 2022 |
http://www.chemicaldeals.com/Results.aspx?searchtext=&quarter=3rd+Quarter+2022