Mergers & Acquisitions
May 13, 2022
Evonik Divestitures
Evonik to Divest Performance Materials Business; Aims to Invest in Sustainable Growth
Published on 2022-05-12. Edited By : SpecialChem
TAGS: Sustainability / Natural Coatings 
Evonik is aligning its portfolio completely to its three growth divisions: Specialty Additives, Nutrition & Care, and Smart Materials. Preparations are already under way for the exit of all three businesses of Performance Materials – Superabsorbents, Functional Solutions and Performance Intermediates. Evonik aims to find new owners or partners for each of these three businesses in the course of 2023.
EUR 3 Bn Investment in Next Generation Solutions
The proceeds from the divestment of the Performance Materials businesses and the operating cash flow in the coming years will be channeled to the green transformation. By 2030, Evonik aims to invest more than €3 billion in Next Generation Solutions – products with superior sustainability benefits.
That is around 80 percent of annual growth investments. In the same period, a further €700 million will be invested in Next Generation Technologies, i.e., the optimization of production processes and infrastructure to avoid CO2 emissions.
“We are greatly increasing our handprint and reducing our footprint at the same time,” said Thomas Wessel, the executive board member responsible for sustainability.
“Translated into KPIs: We will substantially increase the sales share of our Next Generation Solutions from 37 percent at present to over 50 percent by 2030.”
“That includes, for example, drug delivery technologies for controlled release of pharmaceutical active ingredients, gas separation membranes for biogas and hydrogen, as well as natural-based active ingredients for cosmetics. “Our innovations help our customers make their products more sustainable and improve their climate performance,” said Wessel. The dynamic rise in demand for Next Generation Solutions is evidence of their importance and offers Evonik above-average growth potential.
Aim to Reduce CO2 Footprint
Evonik aims to reduce its footprint by significantly cutting both direct and indirect greenhouse gas emissions from production and processing. With the support of Next Generation Technologies, Evonik will reduce its scope 1 and 2 emissions by 25 percent, from 6.5 million metric tons at present to 4.9 million metric tons by 2030.
This goal is fully consistent with the requirements of the Science Based Targets (SBTi) initiative, which Evonik is committed to. At the same time, the investments in sustainability are profitable: By investing €700 million in Next Generation Technologies, Evonik will cut its operating costs by more than €100 million a year up to 2030.
The repositioned Research, Development & Innovation unit is also fully integrating sustainability into the management of Evonik’s innovation activities. “Our RD&I targets are right on track to generate additional sales of more than €1 billion with our innovation growth fields by 2030,” said Harald Schwager, the executive board member responsible for innovation. “Our innovative capability is a key factor in leveraging green and profitable growth.”
Evonik’s aspirations are supported by its venture capital activities. A new Sustainability Tech Fund with a total investment volume of €150 million will strengthen the sustainability targets by investing into innovative technologies and business models. The focus is on new technologies that will reduce emissions as well as on innovations that have a high technological fit with the Next Generation Solutions.
As part of its strategic transformation, Evonik has also reviewed its mid-term financial targets. “Despite the current challenging environment, we are confirming our core targets: an adjusted EBITDA margin of between 18 and 20 percent, a cash conversion rate of over 40 percent, and ROCE of around 11 percent,” said Evonik’s chief financial officer, Ute Wolf.
In line with the full alignment to high-growth, less cyclical specialty chemicals, Evonik now aims to achieve an organic sales CAGR of over 4 percent. Up to now, the target was volume growth of over 3 percent. The annual capex budget increases successively from the current level of around €900 million to a level between €900 million and €1 billion over the next years – as a result of investments in Next Generation Technologies to save CO2 emissions.
In addition to these ambitious financial targets, the updated sustainability targets for Evonik’s handprint and footprint will be integrated into the executive board’s long-term compensation scheme from next year.
Source: Evonik
May 13, 2022
Evonik Divestitures
Evonik to Divest Performance Materials Business; Aims to Invest in Sustainable Growth
Published on 2022-05-12. Edited By : SpecialChem
TAGS: Sustainability / Natural Coatings
Evonik is aligning its portfolio completely to its three growth divisions: Specialty Additives, Nutrition & Care, and Smart Materials. Preparations are already under way for the exit of all three businesses of Performance Materials – Superabsorbents, Functional Solutions and Performance Intermediates. Evonik aims to find new owners or partners for each of these three businesses in the course of 2023.
EUR 3 Bn Investment in Next Generation Solutions
The proceeds from the divestment of the Performance Materials businesses and the operating cash flow in the coming years will be channeled to the green transformation. By 2030, Evonik aims to invest more than €3 billion in Next Generation Solutions – products with superior sustainability benefits.
That is around 80 percent of annual growth investments. In the same period, a further €700 million will be invested in Next Generation Technologies, i.e., the optimization of production processes and infrastructure to avoid CO2 emissions.
“We are greatly increasing our handprint and reducing our footprint at the same time,” said Thomas Wessel, the executive board member responsible for sustainability.
“Translated into KPIs: We will substantially increase the sales share of our Next Generation Solutions from 37 percent at present to over 50 percent by 2030.”
“That includes, for example, drug delivery technologies for controlled release of pharmaceutical active ingredients, gas separation membranes for biogas and hydrogen, as well as natural-based active ingredients for cosmetics. “Our innovations help our customers make their products more sustainable and improve their climate performance,” said Wessel. The dynamic rise in demand for Next Generation Solutions is evidence of their importance and offers Evonik above-average growth potential.
Aim to Reduce CO2 Footprint
Evonik aims to reduce its footprint by significantly cutting both direct and indirect greenhouse gas emissions from production and processing. With the support of Next Generation Technologies, Evonik will reduce its scope 1 and 2 emissions by 25 percent, from 6.5 million metric tons at present to 4.9 million metric tons by 2030.
This goal is fully consistent with the requirements of the Science Based Targets (SBTi) initiative, which Evonik is committed to. At the same time, the investments in sustainability are profitable: By investing €700 million in Next Generation Technologies, Evonik will cut its operating costs by more than €100 million a year up to 2030.
The repositioned Research, Development & Innovation unit is also fully integrating sustainability into the management of Evonik’s innovation activities. “Our RD&I targets are right on track to generate additional sales of more than €1 billion with our innovation growth fields by 2030,” said Harald Schwager, the executive board member responsible for innovation. “Our innovative capability is a key factor in leveraging green and profitable growth.”
Evonik’s aspirations are supported by its venture capital activities. A new Sustainability Tech Fund with a total investment volume of €150 million will strengthen the sustainability targets by investing into innovative technologies and business models. The focus is on new technologies that will reduce emissions as well as on innovations that have a high technological fit with the Next Generation Solutions.
As part of its strategic transformation, Evonik has also reviewed its mid-term financial targets. “Despite the current challenging environment, we are confirming our core targets: an adjusted EBITDA margin of between 18 and 20 percent, a cash conversion rate of over 40 percent, and ROCE of around 11 percent,” said Evonik’s chief financial officer, Ute Wolf.
In line with the full alignment to high-growth, less cyclical specialty chemicals, Evonik now aims to achieve an organic sales CAGR of over 4 percent. Up to now, the target was volume growth of over 3 percent. The annual capex budget increases successively from the current level of around €900 million to a level between €900 million and €1 billion over the next years – as a result of investments in Next Generation Technologies to save CO2 emissions.
In addition to these ambitious financial targets, the updated sustainability targets for Evonik’s handprint and footprint will be integrated into the executive board’s long-term compensation scheme from next year.
Source: Evonik
April 13, 2022
Another Bolt-on Acquisition for Applied Adhesives
Arsenal’s APPLIED Adhesives Acquires PRIME Industries MINNETONKA, Minn., April 12, 2022 – APPLIED Adhesives, a premier adhesive solutions provider in North America, today announced that it has completed its acquisition of PRIME Industries, a regional supplier of adhesives, sealants, and dispensing equipment solutions located in Denver, CO. This acquisition strengthens the Company’s commitment to providing industry leading products, technical expertise, and relentless service to its customers.
“We believe cultural fit is the most important factor when considering an acquisition, specifically the culture of how a company and its employees engage with their customers. The foundation of PRIME’s success is their ability to consistently exceed their customer’s expectations. PRIME’s customer focused cultural is a perfect match for how we partner with our customers at APPLIED,” said John Feriancek, President and CEO of APPLIED Adhesives. “I am thrilled that Dale and his team have chosen to join APPLIED and look forward to working together to continue delivering exceptional service and value to all PRIME customers.”
“We are proud of the business we have built and the value we have delivered to our customers for the past 27 years. We are grateful to our many loyal customers who have partnered with us to be a part of their success. We pride ourselves in partnering with customers to provide the best solutions for their adhesive and equipment needs,” said Dale Charles, Owner of PRIME Industries. “We now entrust this commitment to APPLIED. We are excited to join the APPLIED team and offer even more adhesive and equipment solutions while continuing to build strong relationships with new and existing customers.”
PRIME Industries is APPLIED Adhesives’ seventh acquisition in the past twelve months.
About APPLIED Adhesives
APPLIED Adhesives, founded in 1971, is a premier custom adhesive solutions provider in North America. The company is a value-added distributor of hot melt, water-based, and reactive adhesives as well as dispensing equipment. APPLIED Adhesives serves as a critical supply chain partner to leading adhesive manufacturers and formulators by offering reach and high service levels to an expansive customer base. For more information, please visit appliedadhesives.com.
About PRIME Industries Located in Denver, CO, PRIME Industries is a regional supplier with over 27 (1995) years of providing adhesives, dispensing equipment, and industrial sealants in the Rocky Mountain region. Their practical expertise in many industries, as well as all types of fabrication knowledge using most types of materials allows them to solving complex adhesive and dispensing equipment challenges. Please visit primei.com
About Arsenal Capital Partners Arsenal is a leading private equity firm that specializes in investments in middle-market industrial growth and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds of more than $10 billion, has completed more than 250 platform and add-on investments, and achieved more than 30 realizations. Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add. Visit www.arsenalcapital.com for more information.
April 13, 2022
Another Bolt-on Acquisition for Applied Adhesives
Arsenal’s APPLIED Adhesives Acquires PRIME Industries MINNETONKA, Minn., April 12, 2022 – APPLIED Adhesives, a premier adhesive solutions provider in North America, today announced that it has completed its acquisition of PRIME Industries, a regional supplier of adhesives, sealants, and dispensing equipment solutions located in Denver, CO. This acquisition strengthens the Company’s commitment to providing industry leading products, technical expertise, and relentless service to its customers.
“We believe cultural fit is the most important factor when considering an acquisition, specifically the culture of how a company and its employees engage with their customers. The foundation of PRIME’s success is their ability to consistently exceed their customer’s expectations. PRIME’s customer focused cultural is a perfect match for how we partner with our customers at APPLIED,” said John Feriancek, President and CEO of APPLIED Adhesives. “I am thrilled that Dale and his team have chosen to join APPLIED and look forward to working together to continue delivering exceptional service and value to all PRIME customers.”
“We are proud of the business we have built and the value we have delivered to our customers for the past 27 years. We are grateful to our many loyal customers who have partnered with us to be a part of their success. We pride ourselves in partnering with customers to provide the best solutions for their adhesive and equipment needs,” said Dale Charles, Owner of PRIME Industries. “We now entrust this commitment to APPLIED. We are excited to join the APPLIED team and offer even more adhesive and equipment solutions while continuing to build strong relationships with new and existing customers.”
PRIME Industries is APPLIED Adhesives’ seventh acquisition in the past twelve months.
About APPLIED Adhesives
APPLIED Adhesives, founded in 1971, is a premier custom adhesive solutions provider in North America. The company is a value-added distributor of hot melt, water-based, and reactive adhesives as well as dispensing equipment. APPLIED Adhesives serves as a critical supply chain partner to leading adhesive manufacturers and formulators by offering reach and high service levels to an expansive customer base. For more information, please visit appliedadhesives.com.
About PRIME Industries Located in Denver, CO, PRIME Industries is a regional supplier with over 27 (1995) years of providing adhesives, dispensing equipment, and industrial sealants in the Rocky Mountain region. Their practical expertise in many industries, as well as all types of fabrication knowledge using most types of materials allows them to solving complex adhesive and dispensing equipment challenges. Please visit primei.com
About Arsenal Capital Partners Arsenal is a leading private equity firm that specializes in investments in middle-market industrial growth and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds of more than $10 billion, has completed more than 250 platform and add-on investments, and achieved more than 30 realizations. Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add. Visit www.arsenalcapital.com for more information.
April 6, 2022
Q1 Chemical M&A Deals
Chemical Deal Results
Seems like a slow quarter; lots of deals in Q4 2020 in anticipation of tax changes . . .
| Seller | Buyer | Business | Date |
|---|---|---|---|
| Hall Technologies | Omya | distribution | 1st Quarter 2022 |
| Jeen International | Vantage Specialty Chemicals (HIG Capital) | supplies for the personal care, cosmetic, flavor & fragrance, and pharmaceutical markets. | 1st Quarter 2022 |
| AP Nonweiler | Renovo Capital | industrial coatings | 1st Quarter 2022 |
| Debro | LBB Specialties | specialty chemical distribution in Canada – $50s | 1st Quarter 2022 |
| Sable Marco | Sika | manufacturer of cementitious products and mortars in Canada | 1st Quarter 2022 |
| Biotron Laboratories & Talus Mineral | Aceto | ingredients for the nutritional supplement industry | 1st Quarter 2022 |
| J. Drasner & Co. | HB Chemical (Ravago) | low melting batch inclusion film and bags | 1st Quarter 2022 |
| DuPont | Celanese | majority of Mobility & Materials unit (nylons, polyesters (PET and PBT), and elastomers (TPC and EAE)) – $3,500s/$11,000v | 1st Quarter 2022 |
| Mission Flavor & Fragrances | Hasegawa | flavors and fragrances | 1st Quarter 2022 |
| L&D Adhesives | Applied Adhesives (Arsenal Capital) | adhesives and sealants | 1st Quarter 2022 |
| Seller | Buyer | Business | Date |
|---|---|---|---|
| Bregal Unternehmerkapital | Arsenal Capital | ATP Group (water-based adhesive tapes) | 1st Quarter 2022 |
| Innoleo | Biosynthetic Technologies | distribution of castor oil and derivatives of castor oil | 1st Quarter 2022 |
| Center Oak Partners | Gryphon Investors | Vivify (specialty chemicals for colorant and related specialty applications in the packaging, plastics, personal care & cosmetics, food & beverage, coatings, and agriculture industries) | 1st Quarter 2022 |
| NCP Coatings | Century Park Capital | coatings for the military, industrial, commercial, and forestry end markets | 1st Quarter 2022 |
| GEO (CPS Performance Materials) | Perstorp | Di-Methylolpropionic Acid Business | 1st Quarter 2022 |
http://www.chemicaldeals.com/Results.aspx?searchtext=&quarter=1st+Quarter+2022
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