Mergers & Acquisitions
September 26, 2024
Former CVC Plant Acquired
Polyrheo USA Acquires Plant from Huntsman
Polyrheo USA iannounced the purchase of Huntsman’s Maple Shade, NJ chemical manufacturing plant.
09.09.24
Polyrheo USA announced the purchase of Huntsman’s Maple Shade, NJ, chemical manufacturing plant.
This facility was previously owned by CVC Thermoset and Emerald Performance Materials, before being acquired by Huntsman in February 2020. Polyrheo has begun the process of recommissioning this manufacturing plant. Start up timing will be consistent with the renewal of permits, etc.
Tony Thomas, President of Polyrheo USA, stated, “The Maple Shade site represents a logical next step towards our strategic goal of becoming a significant chemical manufacturer in the United States with a focus on chemicals used in the CASE market, especially resins. Maple Shade is our third chemical manufacturing plant in the United States. Others being in Philadelphia PA and Newell Polymers in West Virginia (former a Deltech resins plant). In addition to these, we have manufacturing plants in Canada and India. Combined these assets give Polyrheo a strong leadership position in CASE and resins chemistries.”
September 23, 2024
Tempur Sealy Update
Tempur Sealy issues an update on proposed Mattress Firm acquisition and divestitures
Sep. 23, 2024 7:01 AM ETTempur Sealy International, Inc. (TPX) StockBy: Clark Schultz, SA News Editor
Tempur Sealy International (NYSE:TPX) provided an update on Monday in regard to the company’s agreement to acquire Mattress Firm Group Inc. The deal is currently being challenged in federal court by the Federal Trade Commission.
The company said the litigation process continues to progress, with hearings currently scheduled to begin on November 12, and is expected to last about two weeks.
Looking ahead, Tempur Sealy (TPX) said it continues to believe that a successful litigation process can be completed in the coming months, which would allow the transaction to close in late 2024 or early 2025, consistent with previous expectations.
In connection with the planned Mattress Firm acquisition, Tempur Sealy (TPX) has entered into a purchase agreement with MW SO Holdings Company for the sale of 73 Mattress Firm retail locations and the company’s Sleep Outfitters subsidiary, which includes 103 specialty mattress retail locations and seven distribution centers. Tempur Sealy (TPX) will continue to supply its Tempur-Pedic, Stearns & Foster, and Sealy products to the divested Mattress Firm and Sleep Outfitters stores. The divestiture was noted to be subject to the closing of Tempur Sealy’s (TPX) acquisition of Mattress Firm and other customary closing conditions. It is expected to close approximately one quarter after the closing of the Mattress Firm transaction.
CEO statement: “As part of our engagement with the FTC on the proposed acquisition of Mattress Firm, we conducted a divestiture process, which led to an agreement with Mattress Warehouse, a company with extensive mattress retail experience, a strong capital base, and a capable leadership team.”
September 15, 2024
Tempur Info
Tempur Sealy gains amid report of divestiture buyer in Mattress Firm deal
Sep. 13, 2024 3:26 PM ETTempur Sealy International, Inc. (TPX) StockBy: Joshua Fineman, SA News Editor
Tempur Sealy (NYSE:TPX) rose 4% amid a report that a potential buyer for the divestiture package for its deal with Mattress Firm has been identified before a November trial from the Federal Trade Commission challenging the combination.
The buyer has met with the FTC, according to a CTFN report on Friday, which said it didn’t know the identity of the bidder.
It wasn’t known if the proposed remedy package has been or will be altered, according to the report.
The FTC sued in early July to block mattress maker Tempur Sealy’s (TPX) planned $4 billion purchase of retailer Mattress Firm. The regulator issued an administrative complaint and authorized a lawsuit in federal court to prevent the deal, alleging that Tempur Sealy — the world’s largest mattress supplier and manufacturer – will have the ability and incentive to “suppress competition” and raise prices for mattresses. The Commission voted 5-0 to authorize the lawsuit to challenge the transaction.
Piper Sandler analyst Peter Keith said in a July note that TPX will have no issue divesting 200 stores that may raise competitive concerns in specific markets.
Tempur Sealy (TPX) agreed to buy Mattress Firm in a $4 billion deal in May 2023.
September 11, 2024
Latest Reports on Adnoc and Covestro
Adnoc to acquire chemical company Covestro for $16bn
By Reuters & Staff Writer
September 11, 2024
Abu Dhabi National Oil Company (Adnoc) is expected to make a formal offer to buy German chemical company Covestro AG.
The Financial Times reported that the 14.4 billion euros ($15.90 billion) offer will set up the state-owned energy producer to expand its overseas holdings.
The companies have been in talks since Adnoc made an initial informal offer in September 2023.
In June Covestro confirmed it had started “concrete negotiations” over a $12.5 billion offer, with €62 ($67) a share as a starting point for the negotiations.
Covestro, which makes plastics and chemicals for construction and engineering, said at the time it was opening its books to Adnoc because an agreement on core aspects including Covestro’s growth strategy may be reached.
- Adnoc’s acquisition strategy could lead to something major
- Adnoc makes final bid for German chemicals maker
- Covestro begins formal talks with Adnoc on its $12bn bid
A spokesperson for Covestro said the company had read the FT report with interest and did not comment further. Adnoc declined to comment.
Covestro generated sales of €14.4 billion in 2023. At the end of that year the company had 48 production sites worldwide and employed approximately 17,500 people.
https://www.agbi.com/energy/2024/09/adnoc-to-acquire-chemical-company-covestro-for-16bn/
August 28, 2024
Adnoc and Covestro Update
Adnoc Finishes Due Diligence on €12 Billion Covestro Deal
ByEyk Henning and Dinesh NairAugust 28, 2024 at 6:54AM EDT
(Bloomberg) — Abu Dhabi National Oil Co. has largely completed due diligence on its planned bid for German chemical company Covestro AG, paving the way for the state-owned energy firm’s biggest-ever deal, people familiar with the matter said.
Adnoc could move forward with an €11.7 billion ($13 billion) offer for Covestro as soon as September, the people said. It has finished site visits to major Covestro plants as part of its in-depth confirmatory due diligence and hasn’t discovered any red flags, according to the people.
The Middle Eastern company still needs final signoff from senior officials for the planned bid of €62 per share, which may take several more weeks, the people said, asking not to be identified because the information is private. Shares of Covestro jumped as much as 5.7% in Frankfurt trading Wednesday to touch €56.90, the highest intraday level since January 2022.
Representatives for Adnoc and Covestro declined to comment.
After more than a year of negotiations, Covestro in June agreed to exchange information with Adnoc to help it firm up the prospective bid. Adnoc said at the time that a potential bid of €62 per share was its final offer, indicating it wouldn’t be raising any further after already bumping several times from its first proposal of €55 per share.
Backed by tens of billions of dollars of oil money, Adnoc has been scouring the world for deals. Chemicals are a big part of that push, as the company sees demand for products used to make goods such as plastics continuing to rise over the coming decades, while the energy transition is likely to slow oil demand.
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