Mergers & Acquisitions
July 23, 2023
Everchem Acquires Specialty Products International
Everchem Acquires Specialty Products International
Everchem, LLC, a successful and expanding North American specialty chemical supplier providing formulated solutions and raw materials for the urethane and epoxy markets, has acquired Specialty Products International (SPI).
SPI has an extensive product catalog in the urethane specialty additives market. The official announcement from Everchem, LLC was made on July 24 at 8AM EDST. The move to acquire Specialty Products International first started in September 2022 as both company principles – David Patten, CEO / CFO Everchem and Ed Galla, President of Specialty Products International – realized that SPI’s unique product line of solution-based catalyst and additive technologies aligned well with Everchem’s commercial strategies.
Ed Galla expressed: “Never did I realize when SPI started up 30 years ago, with our objectives of improving customers’ operations and helping customers capitalize on opportunities, that SPI would be as large and successful as it is today. Based on SPI’s positions in polyurethane additives and specialty chemicals, Everchem is a natural partner to continue and expand on the ‘SPI . . . Dedicated to our Customers’ tradition under the Everchem name. Everchem will be supplying the same products, technologies, and services that SPI’s customers have been accustomed to for decades.”
The Everchem strategy for growth continues to build momentum with our customer centric specialty chemical supplier model. “The acquisition of the SPI business is part of our larger goals bringing highly valued, solutions based chemical technology to the vast polyurethane markets,” as detailed by Del Felter, Vice President Market and Business Development. “The SPI additive technologies product line coupled with their unique applications expands the Everchem customer base and provides additional product placement opportunities for our existing customers.”
The deal was signed June 26 as both companies strive to make a seamless transfer of assets during the next 60 days. Details regarding the deal’s specifics were not provided to the media.
July 18, 2023
Adnoc Bid for Covestro Increased
Adnoc Is Said to Increase Covestro Takeover Bid to €11 Billion
Aaron Kirchfeld, Dinesh Nair and Eyk Henning, Bloomberg News
Officials arrive for a tour of the ADNOC Ruwais refinery and petrochemical complex in Al Ruwais, United Arab Emirates. Photographer: Christophe Viseux/Bloomberg , Photographer: Christophe Viseux/Bloomberg
(Bloomberg) — Abu Dhabi National Oil Co. has increased its takeover offer for Covestro AG to about €11 billion ($12.4 billion) as it seeks to convince the German chemical producer to enter talks, people familiar with the matter said.
Adnoc’s latest proposal values Covestro at about €57 per share, up from its first informal bid of around €55, the people said, asking not to be identified because the information is private. The state-backed firm voiced confidence in Covestro’s strategy and management, according to the people.
Shares of Covestro jumped 5.6% in late Frankfurt trading to close at €50.30, the highest level since February 2022.
Last month, Leverkusen-based Covestro rejected Adnoc’s earlier proposal as too low, people familiar with the matter said at the time. Covestro also raised questions around Adnoc’s plans for its specialties operations.
Adnoc has tried to address Covestro’s concerns about its offer, including over how it would help the German company’s management develop the specialty chemical operations, according the people. If negotiations are entered, there could be scope for further increases in Adnoc’s bid.
Deliberations are ongoing, and it’s unclear how Covestro will respond to the latest proposal. Representatives for Adnoc and Covestro declined to comment.
Adnoc, which produces almost all the oil in the United Arab Emirates, plans to invest $150 billion to expand production capacity for crude, natural gas and chemicals.
It’s also in separate talks with Austria’s OMV AG about a potential merger of two petrochemical firms they back, Borouge Plc and Borealis AG.
June 20, 2023
Big Day for Deals or Offers
Abu Dhabi’s ADNOC in almost $11 billion approach for Covestro -sources
Story by By Emma-Victoria Farr, Ludwig Burger and Patricia Weiss • 2h ago
FILE PHOTO: A general view of ADNOC headquarters in Abu Dhabi© Thomson Reuters
(Reuters) -Abu Dhabi National Oil Company (ADNOC) has approached German plastics and chemicals maker Covestro AG with a takeover proposal worth more than 10 billion euros ($10.9 billion), two people familiar with the matter said on Tuesday.
The energy giant has made an informal offer for a per share price in the mid-50 euros, which compares with a Monday closing price of 40.31 euros, said the sources, asking not to be named because the matter is confidential.
ADNOC and Covestro declined to comment.
Covestro, a maker of transparent polycarbonate plastics, as well as chemicals for insulation and upholstery foams, in April issued earnings guidance that reassured markets about its growth prospects. It also resumed a share buyback programme.
Earlier on Tuesday it confirmed its outlook for 2023.
Shares in Covestro were up 14% at 46 euros at 1400 GMT, trading at their highest in more than a year.
A combination would give energy giant ADNOC, also a maker of refined products and petrochemicals, access to more advanced materials that go into electric vehicles, thermal insulation for buildings as well as coatings, adhesives and engineering plastics.
It would also support Abu Dhabi’s plans to diversify the economy away from energy.
As part of that transformation strategy, which also invited foreign investment, ADNOC began floating units in late 2017.
Over the past two years, it has separately listed businesses offering investors exposure to its petrochemicals, fertilisers, drilling services, gas as well as logistics businesses.
ADNOC Chief Executive Sultan al-Jaber is leading the company’s push into new energy, low carbon fuels, such as ammonia and hydrogen, as well as liquefied natural gas and chemicals.
ADNOC has expanded in Europe previously, agreeing to buy 24.9% of Austrian oil and gas group OMV last December.
The OMV deal would indirectly also increase ADNOC’s holding in both European petrochemicals maker Borealis and Abu Dhabi-listed petrochemicals company Borouge.
A move for Covestro would mirror the expansion of other Middle Eastern energy and petrochemical players into European materials and plastics businesses.
Saudi Aramco in 2018 acquired the shares it did not already own in synthetic-rubber maker Arlanxeo from German co-owner Lanxess for 1.4 billion euros.
SABIC, also of Saudi Arabia, in the same year purchased a stake of almost 25% in Swiss chemicals maker Clariant.
Thanks to a 2007 deal to buy GE’s plastics unit, SABIC competes with Covestro in polycarbonate plastics.
June 14, 2023
Carpenter Comments on Acquisition of Recticel’s Engineered Foams Division
Carpenter Co., one of the world’s largest producers of comfort products, is pleased to announce that it has completed the acquisition of Recticel N.V.’s Engineered Foams Division, which includes the former Foam Partner and Otto Bock operations. The acquisition creates the world’s largest vertically integrated manufacturer of polyurethane foams and specialty polymer products.
Recticel, a Belgian company with origins tracing back to 1778, comprises people, offices and production facilities in Europe, Asia, Africa and North America. The transaction allows Carpenter to expand its geographic footprint, explore new product lines and add new capabilities to the industry leader.
Brad Beauchamp, CEO of Carpenter Co., expressed, “We are very excited to welcome the employees of Recticel, Foam Partner and Otto Bock into Carpenter. We believe that combining these great businesses with ours will result in the best flexible foam company throughout all market segments and geographic locations. We believe that this acquisition will bring additional innovations in polyurethane foam beyond our industry leading materials like Serene® foam, Hybrid TheraGel™ memory foam and others. Recticel is also known for their leadership in sustainability and recycling of foam materials and we expect that to pair very well with our own developments on those issues that are facing the industry.”
Both Carpenter and Recticel have demonstrated a commitment to innovation, sustainability and continuous improvement. United together, the combined organization will work towards a shared purpose: to enhance the quality of life for everyone through its products and services.
June 14, 2023
Recticel Completes Sale of Engineered Foams to Carpenter
Recticel becomes a pure insulation player after completing the divestment of its Engineered Foams activities on 12 and 13 June 2023
Regulated information, Brussels, 14/06/2023 — 06:59 CET, 14.06.2023
- Changes in transaction perimeter: Recticel keeps The Soundcoat Company Inc. (USA – acoustic and thermal insulation) and its 33% participation in Orsa Foam S.p.A. (Italy)
- Recticel Ltd. (UK Comfort Foams) sold to GIL Investments Ltd.
- Revised Enterprise Value of EUR 454.1 million
- Cash proceeds of EUR 427.0 million
- Reduction of IFRS16 lease debt by EUR 23.9 million, and reduction of other provisions and liabilities by EUR 30.6 million
- The transaction represents a 7.5 x multiple on the average 2021 and 2022 Adjusted EBITDA pertaining to the divested perimeter
Recticel signed a binding agreement (see press release dd. 07 December 2021) to sell its Engineered Foams activities to US-based Carpenter Co., subject to customary closing conditions, including anti-trust clearance. Carpenter and Recticel received such clearance from the UK Competition & Markets Authority (CMA) on 12 April 2023, and have subsequently signed the divestment of the two UK Comfort foam facilities (remedies meeting CMA requirements) to GIL Investments Ltd. on 17 April 2023 (see press release dd. 28 April 2023). All conditions precedent being met, Carpenter Co. and Recticel could progress to closing the main transaction.
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