“The merger presents a unique opportunity to enhance value and create a more diversified business with increased scale, broader global reach, and superior customer service capabilities,” said Diversey CEO Phil Wieland. “It will enable the combined company to grow and provide a number of attractive cross-selling opportunities, including meeting increasing customer demand for water management, cleaning and hygiene solutions.”

Once the acquisition closes — anticipated in the second half of 2023 — Diversey will return to being a privately held company. Bain Capital took Diversey public in March 2021, having paid about $3.2 billion for a 73% stake in the Fort Mill, South Carolina-based company in September 2017.

Bain has agreed to vote in favor of the merger and will contribute about 56% of its equity into Solenis and sell the remainder to the company for cash. Diversey’s board of directors has also unanimously approved the deal.

In January 2021, Diversey became Solenis’ distribution partner for its portfolio of water and process treatment chemicals to the food and beverage industry. 

Last month, Solenis closed its purchases of Peru’s Grand Invest and the paper process chemicals business of Kolb Distribution. Solenis has been owned by private equity firm Platinum Equity since November 2021.

Author: Elaine Burridge, Freelance Journalist