Mergers & Acquisitions
December 16, 2020
Lanxess Eyeing Kalama
Lanxess Said to Join Race for $1 Billion Emerald Kalama Chemical
By Kiel Porter , Andrew Marc Noel , and Aaron Kirchfeld December 15, 2020, 11:26 AM EST
- HIG, Rhone, TPG also interested in specialty chemicals firm
- American Securities running auction process for Emerald Kalama
Lanxess AG is among suitors interested in making a bid for private equity-backed Emerald Kalama Chemical, which could sell for around $1 billion, according to people familiar with the matter.
The Cologne, Germany-based chemicals group is working with an adviser on a possible offer for the specialty chemicals company, which is being sold by American Securities, the people said. Emerald Kalama has also attracted interest from buyout firms HIG Capital, Rhone Capital and TPG, the people said, asking not to be identified discussing confidential information.
Representatives for American Securities, Lanxess, Rhone and TPG declined to comment. Representatives for HIG and Emerald Kalama didn’t immediately respond to requests for comment.
A sale of Emerald Kalama, which makes ingredients and preservatives used in foods and cosmetics, would mark American Securities’ exit from Emerald Performance Materials, a diversified group it bought in 2014 and has broken up. Dystar Global Holdings purchased Emerald’s polymer additives unit in 2016, while Huntsman Corp. bought the resin-ingredients business earlier this year.
Under Chief Executive Officer Matthias Zachert, Lanxess is on the hunt for acquisitions. The company has as much as 2 billion euros ($2.4 billion) to pursue dealmaking, Zachert said on an earnings call in November. Emerald Kalama would fit the CEO’s appetite for a higher-margin specialty chemicals asset. The specialty ingredients business being sold by Switzerland’s Lonza Group AG has also attracted interest from Lanxess, Bloomberg News reported last week.
December 9, 2020
BASF Portfolio Changes
BASF Weighs Sale of $400 Million in U.S. Chemical Assets
Andrew Noël, Bloomberg News
The BASF SE logo sits on banners flying outside the company’s headquarters in Ludwigshafen, Germany, on Friday, Feb, 28, 2020. The chemical industry became the latest sector to be hit by the coronavirus after German giant BASF warned the outbreak could lead to the lowest growth in production since the financial crisis more than a decade ago. Photographer: Alex Kraus/Bloomberg , Bloomberg
(Bloomberg) — BASF SE is exploring the sale of some U.S. chemicals assets that could fetch around $400 million, as Chief Executive Officer Martin Brudermueller seeks to streamline the company’s portfolio, people familiar with the matter said.
The world’s largest chemical producer is considering the divestment of a surfactants plant in Kankakee, Illinois, that could be valued at about $250 million, according to the people, who asked not to be identified as the plans are private.
BASF is also working with an adviser to gauge interest in a kaolin business in the southern U.S. state of Georgia, the people said. Those operations could fetch at least $150 million, the people said.
Deliberations are ongoing, and no final decisions have been made on the potential disposals, according to the people. A representative for BASF declined to comment.
Under Brudermueller, BASF has been streamlining its operations. In late 2019, it agreed to sell its construction chemicals business to private equity firm Lone Star Funds for 3.2 billion euros.
BASF has also been preparing a potential stock market listing for Wintershall Dea GmbH, its oil and gas venture with billionaire Mikhail Fridman. Brudermueller said on an Oct. 28 conference call that only some smaller units are left to be divested under its current plan, and BASF has “no urgent need” to rush ahead.
Any proceeds from asset sales in the U.S. would raise funds for BASF at a time when the coronavirus pandemic is hurting demand. BASF reported a net loss of 2.1 billion euros ($2.6 billion) in the third quarter due to heavy writedowns linked to the aviation and automobile industries.
The company’s shares have fallen about 5% this year, giving it a market value of 58.7 billion euros.
December 9, 2020
BASF Portfolio Changes
BASF Weighs Sale of $400 Million in U.S. Chemical Assets
Andrew Noël, Bloomberg News
The BASF SE logo sits on banners flying outside the company’s headquarters in Ludwigshafen, Germany, on Friday, Feb, 28, 2020. The chemical industry became the latest sector to be hit by the coronavirus after German giant BASF warned the outbreak could lead to the lowest growth in production since the financial crisis more than a decade ago. Photographer: Alex Kraus/Bloomberg , Bloomberg
(Bloomberg) — BASF SE is exploring the sale of some U.S. chemicals assets that could fetch around $400 million, as Chief Executive Officer Martin Brudermueller seeks to streamline the company’s portfolio, people familiar with the matter said.
The world’s largest chemical producer is considering the divestment of a surfactants plant in Kankakee, Illinois, that could be valued at about $250 million, according to the people, who asked not to be identified as the plans are private.
BASF is also working with an adviser to gauge interest in a kaolin business in the southern U.S. state of Georgia, the people said. Those operations could fetch at least $150 million, the people said.
Deliberations are ongoing, and no final decisions have been made on the potential disposals, according to the people. A representative for BASF declined to comment.
Under Brudermueller, BASF has been streamlining its operations. In late 2019, it agreed to sell its construction chemicals business to private equity firm Lone Star Funds for 3.2 billion euros.
BASF has also been preparing a potential stock market listing for Wintershall Dea GmbH, its oil and gas venture with billionaire Mikhail Fridman. Brudermueller said on an Oct. 28 conference call that only some smaller units are left to be divested under its current plan, and BASF has “no urgent need” to rush ahead.
Any proceeds from asset sales in the U.S. would raise funds for BASF at a time when the coronavirus pandemic is hurting demand. BASF reported a net loss of 2.1 billion euros ($2.6 billion) in the third quarter due to heavy writedowns linked to the aviation and automobile industries.
The company’s shares have fallen about 5% this year, giving it a market value of 58.7 billion euros.
December 7, 2020
Huntsman Acquires Gabriel Performance Products
Huntsman Announces the Acquisition of Gabriel Performance Products, Further Expanding its Specialty Chemicals Portfolio
Download as PDF December 07, 2020 7:00am EST
THE WOODLANDS, Texas, Dec. 7, 2020 /PRNewswire/ — Huntsman Corporation (NYSE: HUN) today announced its agreement to acquire Gabriel Performance Products, a North American specialty chemical manufacturer of specialty additives and epoxy curing agents for the coatings, adhesives, sealants and composite end-markets, from funds owned by Audax Private Equity.
Under terms of the agreement, Huntsman will pay $250 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity. Gabriel had 2019 revenues of approximately $106 million with three manufacturing facilities located in Ashtabula, Ohio, Harrison City, Pennsylvania and Rock Hill, South Carolina. Based on calendar year 2019, the purchase price represents an adjusted EBITDA multiple of approximately 11 times, or approximately 8 times pro forma for synergies. The transaction is expected to close in the first quarter of 2021 after regulatory approvals.
Commenting on the acquisition, Scott Wright, President of Huntsman’s Advanced Materials division, said: “The acquisition of Gabriel Performance Products broadens the offering in our specialty portfolio and is complementary to our recent acquisition of CVC Thermoset Specialties. Gabriel makes highly specialized toughening and curing agents and other additives used in a wide range of composite, adhesive and coatings applications. We expect that the Gabriel business will strengthen our North America footprint and provide significant commercial synergies as we expand and globalize their specialty products across our global footprint and customer base. The acquisition will further enhance our competitiveness and our world class formulations business by improving our ability to create differentiation in our customers’ applications.”
Peter Huntsman, Chairman, President and CEO further commented: “With this acquisition we conclude a series of strategic initiatives in our Advanced Materials division we started in 2019 before the COVID-19 pandemic. Our initial intent was to complete the acquisitions of Gabriel and CVC simultaneously, together with the divestiture of our India DIY business earlier this year. Despite the challenges created by COVID, I am pleased that we have already closed on two of the transactions and intend to close on the acquisition of Gabriel within the first quarter of 2021. We have significantly strengthened our Advanced Material’s portfolio and broadened our offerings to the market. Based on 2019 results, when netting the three transactions together, we are adding approximately $57 million of adjusted EBITDA pro forma for synergies to our Advanced Materials division, for less than 5 times EBITDA.”
December 7, 2020
Huntsman Acquires Gabriel Performance Products
Huntsman Announces the Acquisition of Gabriel Performance Products, Further Expanding its Specialty Chemicals Portfolio
Download as PDF December 07, 2020 7:00am EST
THE WOODLANDS, Texas, Dec. 7, 2020 /PRNewswire/ — Huntsman Corporation (NYSE: HUN) today announced its agreement to acquire Gabriel Performance Products, a North American specialty chemical manufacturer of specialty additives and epoxy curing agents for the coatings, adhesives, sealants and composite end-markets, from funds owned by Audax Private Equity.
Under terms of the agreement, Huntsman will pay $250 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity. Gabriel had 2019 revenues of approximately $106 million with three manufacturing facilities located in Ashtabula, Ohio, Harrison City, Pennsylvania and Rock Hill, South Carolina. Based on calendar year 2019, the purchase price represents an adjusted EBITDA multiple of approximately 11 times, or approximately 8 times pro forma for synergies. The transaction is expected to close in the first quarter of 2021 after regulatory approvals.
Commenting on the acquisition, Scott Wright, President of Huntsman’s Advanced Materials division, said: “The acquisition of Gabriel Performance Products broadens the offering in our specialty portfolio and is complementary to our recent acquisition of CVC Thermoset Specialties. Gabriel makes highly specialized toughening and curing agents and other additives used in a wide range of composite, adhesive and coatings applications. We expect that the Gabriel business will strengthen our North America footprint and provide significant commercial synergies as we expand and globalize their specialty products across our global footprint and customer base. The acquisition will further enhance our competitiveness and our world class formulations business by improving our ability to create differentiation in our customers’ applications.”
Peter Huntsman, Chairman, President and CEO further commented: “With this acquisition we conclude a series of strategic initiatives in our Advanced Materials division we started in 2019 before the COVID-19 pandemic. Our initial intent was to complete the acquisitions of Gabriel and CVC simultaneously, together with the divestiture of our India DIY business earlier this year. Despite the challenges created by COVID, I am pleased that we have already closed on two of the transactions and intend to close on the acquisition of Gabriel within the first quarter of 2021. We have significantly strengthened our Advanced Material’s portfolio and broadened our offerings to the market. Based on 2019 results, when netting the three transactions together, we are adding approximately $57 million of adjusted EBITDA pro forma for synergies to our Advanced Materials division, for less than 5 times EBITDA.”
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