Azelis expects the launch to consist of a primary offering of newly issued shares from a capital increase, as well as shares sold by existing investors. All shares will be sold in a private placement to qualified investors in Belgium, qualified institutional buyers in the US, and certain other qualified and/or institutional investors in the rest of the world.

The company has not revealed timing for the IPO, which has been mooted several times in past years. Azelis is currently owned by EQT Partners, which bought the Belgium-based multinational distributor in 2018 from Apax Partners, owner since 2015. Prior to Apax, Azelis was in the hands of 3i since December 2006.

Azelis bills itself as the second-largest pure-play company in the specialty chemicals and food ingredients distribution market, with an estimated 2% share. It employs nearly 2,800 people across 56 countries and has more than 60 applications laboratories and about 90 offices worldwide. From January 2018 through June 2021, the company has completed 21 acquisitions. For the period 2016-2020, it reported a 13% compound annual growth rate (CAGR) in gross profit.

“We have made great progress with the support of EQT in delivering our growth strategy to date, establishing ourselves as a market leading innovation service provider for the specialty chemicals and food ingredients industry,” said CEO Hans Joachim Müller. “However, there remains great opportunity ahead. As a public company, we believe we will be able to fully capitalize on growth opportunities, continuing to complement our strong organic growth with accretive acquisitions. We are focused on being the preeminent global innovation service provider for the specialty chemicals and food ingredients distribution market.”

Together with borrowings under new credit facilities, Azelis said the IPO proceeds will allow it to repay its €1.6bn outstanding debt, while also providing increased financial flexibility that is “more consistent with its current profile and maturity.” It added that the offering will also provide funding and access to capital markets to support the group’s growth strategy and future acquisitions.

Author: Elaine Burridge, Freelance Journalist