Mergers & Acquisitions
July 7, 2020
Meridian Adhesives Acquires E-Chem
Arsenal’s Meridian Adhesives Group Acquires E-Chem
DALTON, Georgia, July 6, 2020 – Meridian Adhesives Group (Meridian) announced today the acquisition of E-Chem.
Located in Albuquerque, New Mexico, E-Chem specializes in the design, manufacturing, marketing and supply of epoxy polymer products for concrete. These high-value products are used in the preservation, rehabilitation, repair and structural support of concrete surfaces and structures. The company serves multiple industries, including transportation authorities, petro-chemical processing, renewable energy, non-residential concrete construction and parking structure rehabilitation.
“We are thrilled to have E-Chem joining the Infrastructure Division of Meridian,” said Daniel Pelton, CEO of Meridian Adhesives Group. “We are looking forward to expanding our business more aggressively in the infrastructure market, and I am confident the skilled team at E-Chem will drive value to that endeavor.”
As part of Meridian’s Infrastructure Division, E-Chem will work alongside Adhesives Technology Corp., a manufacturer of construction and industry-related adhesives in epoxies, urethanes, acrylics, ester blends and polyureas.
E-Chem was founded in 2012 by James High and has since become an industry leader in epoxy bridge deck overlays and high friction surface treatment, boasting the largest collection of acceptances and approvals in this category for the U.S.
“Joining Meridian’s expert technology team is an exciting step for E-Chem,” said James High, President of E-Chem. “Our continuous pattern of growth will be bolstered even further by the group’s extensive distributor network, which is a significant asset in terms of market penetration. This strategic initiative will also provide value in terms of productivity, from additional professional resources to better buying positions, while allowing us to expand our focus on existing product improvements and the development of innovative new products geared toward the rehabilitation of our nation’s aging infrastructure.”
For more information regarding E-Chem, visit http://e-chem.net.
About Meridian Adhesives Group Meridian Adhesives Group is a leading manufacturer of high-value adhesives and sealants technologies. Its portfolio of solutions includes high-performance specialty epoxy, polyurethane, hot melt and hybrid adhesives for the electronics, flooring, infrastructure and packaging markets. The company has operations in Dalton, GA; Fontana, CA; Billerica, MA; Pompano Beach, FL; Cranston, RI; Albuquerque, New Mexico; Columbus, OH; Marlborough, UK; and Augsburg, Germany. For more information, visit www.meridianadhesives.com.
Arsenal Capital Partners: Arsenal is a specialized private equity firm that focuses on investments in middle‐market specialty industrials and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds of $5.3 billion, has completed more than 45 platform investments, and has 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. For more information, please visit www.arsenalcapital.com.
June 22, 2020
Divestments Ahead
Total to Solvay Pursue Chemical Divestments as M&A Returns
Myriam Balezou, Andrew Noël and Dinesh Nair, Bloomberg News
A logo sits on the exterior of the Total SA skyscraper headquarters in the La Defense business district in Paris, France, on Wednesday, Jan. 22, 2020. French Finance Minister Bruno Le Maire said he’s hopeful for a compromise with the U.S. on digital tax to avoid a transatlantic trade war. Photographer: Anita Pouchard Serra/Bloomberg , Bloomberg
(Bloomberg) — European companies from Total SA to Solvay SA are pursuing divestments of chemical businesses, in one of the first tentative signs that mergers and acquisitions are starting to return in the region.
Total is considering a sale of its Cray Valley chemical-additives unit, which could fetch about $300 million to $500 million, according to people with knowledge of the matter. The French energy company has been speaking with potential advisers about a divestment, the people said, asking not to be identified because the information is private.
Arkema SA has separately started gauging interest in its plexiglass business, which could fetch about 1 billion euros ($1.1 billion) for the French chemical producer, people familiar with the matter said. The company has sent potential bidders so-called teaser documents with an overview of the Altuglas International division, according to the people.
Companies have been seeking to offload peripheral businesses in a bid to boost returns and fend off criticism from activist investors. Carveouts by European companies hit a record last year and could rise further in 2020 as firms seek to weather the after-effects of the coronavirus pandemic, a top Credit Suisse Group AG dealmaker said last week.
Streamlining Operations
Some chemical producers have been able to ride through the crisis relatively unscathed, particularly those making products like cleaning solvents and protective sheets which are seeing increased sales. A gauge of European chemical companies has risen 1.8% over the past 12 months, bucking the 5.4% decline in the Stoxx Europe 600 Index.
Solvay SA is also exploring a sale of two units as Chief Executive Officer Ilham Kadri pushes ahead with efforts to streamline the Belgian chemical maker, people with knowledge of the matter said. The potential divestments include a unit that works with the compound strontium carbonate, which could fetch around 150 million euros, and another making chemicals used in shampoo and dishwashing products, the people said.
The volume of dealmaking globally has fallen 47% this year to $991 billion, according to data compiled by Bloomberg. Some shelved deal processes have been revived in recent weeks, with Bridgepoint preparing to restart a bidding process for Iberian agrochemical business Rovensa, Bloomberg News reported this month.
Sasol Sale
Arkema’s Altuglas sale is attracting initial interest from private equity firms including Advent International, Rhone, SK Capital Partners and Triton Partners, the people said. The business produces polymethyl methacrylate-based plastics, which are used in car parts like headlights as well as building materials. Colombes, France-based Arkema hasn’t decided when to seek first-round bids and could wait until after summer to formally solicit offers, one of the people said.
Beyond Europe, Sasol Ltd. is attracting interest in a large stake it’s selling in the Lake Charles chemical complex in the U.S. The South African company has received offers from Ineos Group Ltd., Chevron Phillips Chemical Co. and LyondellBasell Industries NV for the holding, which could fetch more than $2 billion, people familiar with the matter said earlier this month.
All the companies’ deliberations are at an early stage, and there’s no certainty the suitors will submit bids, the people said.
Representatives for Total, Arkema, Advent, Rhone, SK and Triton declined to comment. A spokesman for Solvay said the chemical group has a clear plan to unlock value and regularly receives approaches, particularly after last year’s strategy update. He declined to comment further. A spokesman for Sasol said the firm’s asset disposal process had yielded “good interest from strong contenders.”
June 22, 2020
Divestments Ahead
Total to Solvay Pursue Chemical Divestments as M&A Returns
Myriam Balezou, Andrew Noël and Dinesh Nair, Bloomberg News
A logo sits on the exterior of the Total SA skyscraper headquarters in the La Defense business district in Paris, France, on Wednesday, Jan. 22, 2020. French Finance Minister Bruno Le Maire said he’s hopeful for a compromise with the U.S. on digital tax to avoid a transatlantic trade war. Photographer: Anita Pouchard Serra/Bloomberg , Bloomberg
(Bloomberg) — European companies from Total SA to Solvay SA are pursuing divestments of chemical businesses, in one of the first tentative signs that mergers and acquisitions are starting to return in the region.
Total is considering a sale of its Cray Valley chemical-additives unit, which could fetch about $300 million to $500 million, according to people with knowledge of the matter. The French energy company has been speaking with potential advisers about a divestment, the people said, asking not to be identified because the information is private.
Arkema SA has separately started gauging interest in its plexiglass business, which could fetch about 1 billion euros ($1.1 billion) for the French chemical producer, people familiar with the matter said. The company has sent potential bidders so-called teaser documents with an overview of the Altuglas International division, according to the people.
Companies have been seeking to offload peripheral businesses in a bid to boost returns and fend off criticism from activist investors. Carveouts by European companies hit a record last year and could rise further in 2020 as firms seek to weather the after-effects of the coronavirus pandemic, a top Credit Suisse Group AG dealmaker said last week.
Streamlining Operations
Some chemical producers have been able to ride through the crisis relatively unscathed, particularly those making products like cleaning solvents and protective sheets which are seeing increased sales. A gauge of European chemical companies has risen 1.8% over the past 12 months, bucking the 5.4% decline in the Stoxx Europe 600 Index.
Solvay SA is also exploring a sale of two units as Chief Executive Officer Ilham Kadri pushes ahead with efforts to streamline the Belgian chemical maker, people with knowledge of the matter said. The potential divestments include a unit that works with the compound strontium carbonate, which could fetch around 150 million euros, and another making chemicals used in shampoo and dishwashing products, the people said.
The volume of dealmaking globally has fallen 47% this year to $991 billion, according to data compiled by Bloomberg. Some shelved deal processes have been revived in recent weeks, with Bridgepoint preparing to restart a bidding process for Iberian agrochemical business Rovensa, Bloomberg News reported this month.
Sasol Sale
Arkema’s Altuglas sale is attracting initial interest from private equity firms including Advent International, Rhone, SK Capital Partners and Triton Partners, the people said. The business produces polymethyl methacrylate-based plastics, which are used in car parts like headlights as well as building materials. Colombes, France-based Arkema hasn’t decided when to seek first-round bids and could wait until after summer to formally solicit offers, one of the people said.
Beyond Europe, Sasol Ltd. is attracting interest in a large stake it’s selling in the Lake Charles chemical complex in the U.S. The South African company has received offers from Ineos Group Ltd., Chevron Phillips Chemical Co. and LyondellBasell Industries NV for the holding, which could fetch more than $2 billion, people familiar with the matter said earlier this month.
All the companies’ deliberations are at an early stage, and there’s no certainty the suitors will submit bids, the people said.
Representatives for Total, Arkema, Advent, Rhone, SK and Triton declined to comment. A spokesman for Solvay said the chemical group has a clear plan to unlock value and regularly receives approaches, particularly after last year’s strategy update. He declined to comment further. A spokesman for Sasol said the firm’s asset disposal process had yielded “good interest from strong contenders.”
June 19, 2020
BASF Comments
BASF says would challenge any takeover attempt, activist investor
Jun. 18, 2020 11:31 AM ET|About: BASF SE (BASFY)|By: Carl Surran, SA News Editor
BASF (OTCQX:BASFY +2.4%) is aware of the risk of an unsolicited takeover approach or an attack from activist investors and is ready to react, CEO Martin Brudermueller said at the company’s virtual annual shareholders meeting.
The CEO said he could not rule out unwanted attempts to take control of the company, given the decline in its market value.
BASF also reiterates it sees Q2 operating profit in the low triple-digit millions of euros and that it will not provide full-year guidance; the company sees business improvement during 2020 but no full recovery.
June 19, 2020
BASF Comments
BASF says would challenge any takeover attempt, activist investor
Jun. 18, 2020 11:31 AM ET|About: BASF SE (BASFY)|By: Carl Surran, SA News Editor
BASF (OTCQX:BASFY +2.4%) is aware of the risk of an unsolicited takeover approach or an attack from activist investors and is ready to react, CEO Martin Brudermueller said at the company’s virtual annual shareholders meeting.
The CEO said he could not rule out unwanted attempts to take control of the company, given the decline in its market value.
BASF also reiterates it sees Q2 operating profit in the low triple-digit millions of euros and that it will not provide full-year guidance; the company sees business improvement during 2020 but no full recovery.
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