Mergers & Acquisitions
March 12, 2024
Tempur Sealy Comments on Mattress Firm Acquisition
Tempur Sealy Provides Update on Mattress Firm Acquisition
Mar. 12, 2024 4:30 PM ETTempur Sealy International, Inc. (TPX)
– Expects FTC to complete its review by the end of the second quarter
– Continues to expect the transaction to close in mid to late 2024
– Further solidifies key supplier relationships to maintain Mattress Firm’s position as a leading multi-branded retailer
LEXINGTON, Ky., March 12, 2024 /PRNewswire/ — Tempur Sealy International, Inc. (TPX) (NYSE: TPX, “Company” or “Tempur Sealy”) today provided an update with respect to the Company’s acquisition of Mattress Firm Group Inc. (“Mattress Firm”). On May 9, 2023, Tempur Sealy signed a definitive agreement to acquire Mattress Firm, the largest mattress specialty retailer in the U.S. The Company continues to work with the Federal Trade Commission (“FTC”) to advance the transaction, and now expects that the FTC will complete its review by the end of the second quarter. Consistent with previous expectations, the Company continues to expect the transaction to close in mid to late 2024.
Tempur Sealy and Mattress Firm continue to make joint progress in planning for post-closing, including solidifying Mattress Firm’s key supplier relationships ahead of the expected closing. Since announcing the acquisition, Tempur Sealy has executed post-closing supply agreements with six (6) other mattress manufacturers, including Purple Innovation, Inc. These contracts are consistent with the Company’s plan for Mattress Firm to continue as a multi-branded retailer.
Tempur Sealy Chairman and CEO Scott Thompson commented, “Since announcing the acquisition in May, Tempur Sealy has signed post-closing supply agreements with numerous existing Mattress Firm suppliers, as well as a new supply agreement with a manufacturer not currently supplying Mattress Firm. We have engaged a critical mass of suppliers to provide a robust and diverse offering of high quality bedding products to Mattress Firm customers. These developments are consistent with our plan and expectation that Mattress Firm will continue as a multi-branded retailer post-closing. We look forward to working with quality suppliers and the Mattress Firm organization to facilitate continued innovation and improve the sleep of consumers.”
Forward-Looking Statements
This press release contains statements that may be characterized as “forward-looking” within the meaning of the federal securities laws. Such statements might include information concerning one or more of the Company’s plans, guidance, objectives, goals, strategies, and other information that is not historical information. When used in this release, the words “will,” “targets,” “expects,” “anticipates,” “plans,” “proposed,” “intends,” and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements include, without limitation, statements relating to the Company’s expectations regarding the announced Mattress Firm acquisition including the related regulatory approval process, expectations regarding post-closing supply agreements, future performance, cost synergies, integration of acquired companies with our business, personnel, the impact of the anticipated acquisition on the Company’s brands, products, customer base, results of operations, or financial position and the ability of the Company to close the acquisition including on the timeline indicated. Any forward-looking statements contained herein are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company will realize these expectations or that these beliefs will prove correct.
Numerous factors, many of which are beyond the Company’s control, could cause actual results to differ materially from any that may be expressed herein as forward-looking statements. These potential risks include risks associated with receipt of regulatory approvals and satisfaction of closing conditions prior to consummation of the acquisition; Mattress Firm’s ongoing operations; the ability to successfully integrate Mattress Firm into Tempur Sealy’s operations and realize synergies from the transaction; the possibility that the expected benefits of the acquisition are not realized when expected or at all; general economic, financial and industry conditions, particularly conditions relating to the financial performance and related credit issues present in the retail sector, as well as consumer confidence and the availability of consumer financing; the impact of the macroeconomic environment in both the U.S. and internationally on Mattress Firm and the Company; uncertainties arising from national and global events; industry competition; the effects of consolidation of retailers on revenues and costs; and consumer acceptance and changes in demand for Mattress Firm’s and the Company’s products and the factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. There may be other factors that may cause the Company’s actual results to differ materially from the forward-looking statements. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.
About Tempur Sealy International, Inc.
Tempur Sealy is committed to improving the sleep of more people, every night, all around the world. As a leading designer, manufacturer, distributor and retailer of bedding products worldwide, we know how crucial a good night of sleep is to overall health and wellness. Utilizing over a century of knowledge and industry-leading innovation, we deliver award-winning products that provide breakthrough sleep solutions to consumers in over 100 countries.
Our highly recognized brands include Tempur-Pedic®, Sealy® and Stearns & Foster® and our popular non-branded offerings consist of value-focused private label and OEM products. At Tempur Sealy we understand the importance of meeting our customers wherever and however they want to shop and have developed a powerful omni-channel retail strategy. Our products allow for complementary merchandising strategies and are sold through third-party retailers, our over 750 Company-owned stores worldwide and our e-commerce channels. With the range of our offerings and variety of purchasing options, we are dedicated to continuing to turn our mission to improve the sleep of more people, every night, all around the world into a reality.
Importantly, we are committed to carrying out our global responsibility to protect the environment and the communities in which we operate. As part of that commitment, we have established the goal of achieving carbon neutrality for our global wholly owned operations by 2040.
Tempur Sealy Investor Relations Contact
Aubrey Moore
Investor Relations
Tempur Sealy International, Inc.
800-805-3635
Investor.relations@tempursealy.com
March 3, 2024
Univar Acquires Valley Solvents
Univar Solutions Acquires Valley Solvents & Chemicals, Expanding North America Distribution Network and Market Expertise in Energy, Industrial, and Environmental Services
News provided by Univar Solutions LLC
01 Mar, 2024, 12:00 ET
Acquisition strengthens the Company’s local chemical distribution and custom blending capabilities and waste management services in the growing Texas, Gulf Coast, and northern Mexico regions
DOWNERS GROVE, Ill., March 1, 2024 /PRNewswire/ — Univar Solutions LLC (“Univar Solutions” or the “Company”), a leading global solutions provider to users of specialty ingredients and chemicals, today announced the acquisition of Valley Solvents & Chemicals Company and certain of its affiliates (“Valley Solvents”), a long-time distributor of solvents and inorganics and provider of waste management services in the Texas and Gulf Coast region. The acquisition expands the Company’s local chemical distribution network and valued-added services across its Chemical Distribution division, while strengthening environmental services capabilities for its ChemCare business under its Services division.
Univar Solutions Acquires Valley Solvents & Chemicals, Expanding North America Distribution Network
Valley Solvents is a key regional chemical distributor that has served the Texas and Gulf Coast region for over 72 years with a full range of chemical products and services, from delivery to disposal. Valley Solvents services more than 1,000 customers with an extensive bulk and packaged product portfolio, custom blending, waste management, and a specialty support focus in northern Mexico.
“We are committed to increasing our solvents and inorganics footprint to help our suppliers and customers grow their businesses,” said president and chief executive officer David Jukes. “The acquisition of Valley Solvents allows us to strengthen our North America Chemical Distribution division and enhance our environmental services capabilities in a growing market. With the integration of Valley Solvents’ operations, we believe we are well positioned to capitalize on opportunities with their strong local packaged business as well as in Energy and Industrial markets that have proven resilient throughout market cycles.”
Jim Holcomb, divisional president of Chemical Distribution for Univar Solutions, added: “The Valley Solvents’ team brings new customers and deep market expertise to the Univar Solutions platform. I’m excited to find new ways to bring greater individualized support and value-added products, such as custom solvent blending, to our customers in an increasingly critical area of North America.”
“Valley Solvents’ waste management services are a natural fit with our existing environmental programs and services offered through our ChemCare business, which support customers’ ability to achieve their sustainability objectives,” said Nick Alexos, chief financial officer and divisional president of Services for Univar Solutions. “Our focus on customer needs is an important part of our longstanding Growing Together strategy to be easy to do business with, as well as to optimize customer relationships and service.”
“I am so proud of the business our team has helped build over many decades, and we are excited to have found a partner in Univar Solutions that shares many of our values and aspirations. Becoming part of the largest chemical distributor in the United States is an exciting moment for the company and helps ensure continued success and innovation for our customers, suppliers, and employees,” said Bill Davis, president of Valley Solvents. “I am thrilled our legacy of service excellence, quality, and teamwork will continue to be part of Univar Solutions’ future.”
About Univar Solutions
Univar Solutions is a leading global specialty chemical and ingredient distributor representing a premier portfolio from the world’s leading producers. With the industry’s largest private transportation fleet and technical sales force, unparalleled logistics know-how, deep market and regulatory knowledge, formulation and recipe development, and leading digital tools, the Company is well-positioned to offer tailored solutions and value-added services to a wide range of markets, industries, and applications. While fulfilling its purpose to help keep communities healthy, fed, clean and safe, Univar Solutions is committed to helping customers and suppliers innovate and focus on Growing Together. Learn more at www.univarsolutions.com.
About Valley Solvents
Valley Solvents is a highly regarded regional chemical distributor headquartered in South Texas. Since 1952, the family-owned company has distributed an extensive portfolio of industrial solvents and chemicals, and provided waste management and other services responsibly, safely, securely, and on time to more than 1,000 customers across Texas, Oklahoma, Louisiana, and northern Mexico. Learn more about www.valleysolvents.com.
February 28, 2024
Chemical M&A to Accelerate
Chemical Sector to See Increased M&A Momentum, Brenntag’s CEO Says
Published: Feb. 27, 2024 at 10:02 a.m. ET
By Stefanie Haxel
The global chemical sector might see increased momentum in mergers and acquisitions, according to Brenntag’s chief executive officer.
The head of the German chemicals company, Christian Kohlpaintner, said in an interview with Dow Jones Newswires that dealmaking in the chemical industry seems to be accelerating, as reflected in the size of acquisitions being implemented.
“If you look at the top 50 distributors, in a short period of time, I would say in the last seven or eight years, they have increased their market share from 30% to almost 40%,” Kohlpaintner said, which he accredits to aggressive acquisitions.
Brenntag had doubled its acquisition budget in the fall of 2022 to between 400 million and 500 million euros ($434.1 million-$542.7 million) a year.
Although many players in the industry have grown significantly through acquisitions in recent years, the economies of scale aren’t enough to have a positive impact on manufacturers.
“This is the reason why, in our opinion, the consolidation of the market will occur at a higher speed and in larger steps,” Kohlpaintner said.
According to data from the Boston Consulting Group, the market for industrial chemicals is growing between 2% and 4% annually, and that for specialties is growing by 3% to 5%.
–Nina Kienle contributed to this story.
Write to Stefanie Haxel at stefanie.haxel@wsj.com
February 22, 2024
The Latest from Adnoc
Adnoc to Progress in Covestro Talks Ahead of Potential Bump
Eyk Henning and Dinesh Nair, Bloomberg News
Colored foam samples made from toluene diisocyanate (TDI) sit in this arranged photograph at the Covestro AG chemical park in Dormagen, Germany, on Wednesday, May 9, 2018. Bayer AG sold its remaining stake in Covestro, raising 2.2 billion euros ($2.6 billion) as the German drugmaker closes in on the planned $66 billion purchase of genetically modified seeds supplier Monsanto Co. Photographer: Dario Pignatelli/Bloomberg , Bloomberg
(Bloomberg) — Abu Dhabi National Oil Co. is inching toward an improved bid for Covestro AG after finding a potential way to resolve the impasse over its €11.3 billion ($12.1 billion) pursuit of the German chemical maker, people familiar with the matter said.
Adnoc is working with a consulting firm that’s sent dozens of questions to Covestro about the details of its operations, according to the people. The responses could give the Abu Dhabi-based energy giant enough information to improve its bid to slightly more than €60 per share, the people said, asking not to be identified because the information is private.
Shares of Covestro jumped as much as 8.1% in late Frankfurt trading Thursday. They were up 4.8% at 5:35 p.m. in Germany, giving the company a market value of about €9.4 billion.
In December, Adnoc improved its non-binding offer to €60 per share, up from previous proposals of €57 and €55, Bloomberg News has reported. The latest increase wasn’t enough to win over some parts of Covestro’s supervisory board, which thus hasn’t granted Adnoc full access to its data room, the people said.
While Adnoc executives were struggling to justify another bump without access to proper due diligence, Covestro’s responses to the latest questions may help bridge the gap, the people said. It’s still unclear how much Adnoc may be willing to increase its bid and whether it will be enough to win over Covestro.
Deliberations are ongoing, and there’s no certainty they will lead to a deal. Representatives for Adnoc and Covestro declined to comment.
Adnoc has been pursuing Covestro since the middle of last year, part of the Abu Dhabi company’s push to diversify internationally. Its overtures come as the European chemical industry struggles with the region’s anemic growth and a weaker-than-expected rebound in China.
Producers including Lanxess AG and BASF SE warned of disappointing earnings last year. Covestro will announce its full-year results on Feb. 29, when investors also expect it to provide an outlook for the current year and beyond.
Covestro indicated in November it’s on track to generate about €1.4 billion in earnings before interest, taxes, depreciation and amortization in 2024, well below the €2.8 billion it said it could achieve under average market conditions.
(Updates with share movement in third paragraph.)
https://www.bnnbloomberg.ca/adnoc-to-progress-in-covestro-talks-ahead-of-potential-bump-1.2038028
January 29, 2024
Arsenal Capital Invests in Polycorp
Arsenal Capital Invests in Polycorp January 29, 2024. New York, NY and Elora, Ontario, Canada. Arsenal Capital Partners (“Arsenal”), a private equity firm that specializes in investments in industrial and healthcare companies, today announced that it has completed a majority investment in Polycorp Ltd. (“Polycorp”), a leading manufacturer of engineered elastomer solutions. The terms of the transaction were not disclosed.
Polycorp is headquartered in Elora, Ontario, and employs approximately 250 full-time staff. The company serves its global customer base with rubber- and polyurethane- based elastomer solutions, that help reduce corrosion, abrasion, vibration, and noise. Polycorp’s leading engineering and design services, combined with its robust molding, calendering, and extrusion capabilities, underpin its success serving mission-critical, infrastructure and industrial focused applications for the mineral processing, rail, and protective linings industries.
“The transaction with Arsenal will accelerate Polycorp’s strategic growth initiatives and enable additional investment in our manufacturing and R&D capabilities, human capital, and strategic acquisitions,” said Peter Snucins, founder of Polycorp. “I am especially excited to partner with Arsenal given the firm’s established track record of building leading materials technology businesses in the elastomers sector.” Following the closing, Peter Snucins will remain as an investor and Board member of Polycorp.
Brett Schneider, an Operating Partner of Arsenal, commented, “The company’s portfolio of capabilities is a natural fit for Arsenal, given our previous successful experiences investing in elastomeric and polymeric technologies, such as rubber and polyurethanes.”
“We are excited to partner with Polycorp given the company’s best-in-class elastomeric technologies and customer service capabilities,” added Dan Bruck, a Principal of Arsenal. William Blair & Company, L.L.C. acted as exclusive financial advisor to Polycorp. Harris Williams served as a financial advisor to Arsenal.
About Polycorp Founded in 1996 and headquartered in Elora, Ontario, Polycorp is a leader in the design, manufacture, sale, and distribution of engineered elastomeric solutions. Polycorp serves critical, high cost of failure applications across infrastructure and industrial focused markets, globally across 35+ countries worldwide.
For more information, visit www.poly-corp.com.
About Arsenal Capital Partners Arsenal Capital Partners is a leading private equity firm that specializes in investments in industrial growth and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds totaling over $10 billion, completed more than 290 platform and add-on acquisitions, and achieved more than 35 realizations. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add.
For more information, visit www.arsenalcapital.com
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