M&A Activity Will Continue, No Doubt!
Analysis of the mergers & acquisitions activity in chemical distribution under the impression of the pandemic situation and how it might develop going forward.
Mergers & Acquisitions (M&A)
The Age of Sustainability
In a nutshell, reaching sustainability has become a key aspect for chemical companies and adjacent businesses along the product chain with a high entry hurdle for everyone.
Element Solutions Buys UK Electro-chemicals Firm
US specialty chemicals company Element Solutions has paid about $60 million in cash to buy H.K Wentworth (HKW), a UK-based producer of electro-chemicals for the electronics, LED, automotive and industrial manufacturing industries.
Eastman Acquires Spain’s 3F Feed & Food
US specialty materials company Eastman Chemical has acquired 3F Feed & Food, a Spanish company specializing in the development of additives for animal feed and human food. Financial details of the transaction were not disclosed. The newly acquired business will become part of Eastman’s Additives & Functional Products segment.
Pfizer Acquires Amplyx Pharmaceuticals
US pharma giant Pfizer has acquired privately owned Amplyx Pharmaceuticals for an undisclosed sum. With the purchase of the clinical-stage biopharmaceutical company based at San Diego, California, the New York drugmaker will expand its anti-infectives pipeline with addition of novel antifungal Phase 2 candidate, Fosmanogepix (APX001).
Sibur and TAIF to Merge Petchems Businesses
Russian companies Sibur and TAIF are merging their petrochemical businesses in a move they said will create one of the world’s top five producers of polyolefins and rubber products. The merger, which remains subject to regulatory approval and the completion of relevant corporate procedures, could be finalized by the end of this year.
Australia’s Orocobre and Galaxy Agree Merger
Australian companies Orocobre and Galaxy Resources have agreed to a “merger of equals” that they said would create the world’s fifth-largest manufacturer of lithium chemicals. The deal, valued at A$4 billion, has been unanimously approved by the boards of both companies and is expected to complete by August 2021.
Elementis Rebuffs Innospec Approach
UK specialty chemicals company Elementis has been the subject of another attempted takeover – its fourth in under six months – but this time from US rival, Innospec.
Air Products Takes Control of Gasification JV
US industrial gases specialist Air Products has bought the remaining 50% equity stake in a gasification technology joint venture it picked up in the 2019 acquisition of GE’s gasification business and technology. Financial terms of the arrangement with China Shenhua Coal to Liquid and Chemical Co., part of China Energy Group, were not disclosed.
Aceto Acquires A&C
Virtual specialty materials manufacturer Aceto has acquired A&C, a producer of specialty excipients, buffers and process solutions, for an undisclosed sum.
One Rock Completes Acquisition of Distrupol
US private equity group One Rock Capital Partners has completed its acquisition of UK plastics distributor Distrupol from US chemicals distributor Univar – the plans were announced in late January. Financial details of the deal were not disclosed.
Novozymes Boosts Microbiome with Biota Buy
Novozymes has acquired Biota’s microbiome R&D team and data science platform for an undisclosed sum. The move builds on two previous deals in the microbiome field this past year, notably of US-based Microbiome Labs and Ireland’s PrecisionBiotics.
Amgen Boosts Oncology Portfolio with Five Prime Buy
Amgen is to buy Five Prime Therapeutics, a clinical-stage biotech focused on developing immuno-oncology and targeted cancer therapies, for about $1.9 billion. The transaction is expected to close by the end of the second quarter, when a wholly owned subsidiary of Amgen will merge with Five Prime.
Milliken Acquires Germany’s Zebra-chem
US plastics additives and colorants manufacturer Milliken has acquired Zebra-chem, a globally-focused chemical producer based at Bad Bentheim, Germany. The German company specializes in chemical blowing agents as well as peroxide masterbatches that enable plastics producers to incorporate up to 100% recycled content into new plastics.
Barentz Boosts European and US Presence
Dutch distributor Barentz has acquired a majority stake in the Noack Group, extending its activities in the Central/East European region and gaining a complementary portfolio of animal nutrition ingredients.
PQ Sells Performance Chemicals to Cerberus/Koch Partnership
PQ Group has agreed to sell its Performance Chemicals business for $1.1 billion to a partnership established by Cerberus Capital Management and Koch Minerals & Trading. The divestment is part of PQ’s strategy, called Simpler + Stronger, which the group said is aimed at driving greater value for its shareholders.
ICON and PRA Health Sciences in $12 Billion Merger
Irish CDMO ICON is to acquire US-based rival PRA Health Sciences in a cash-and-stock deal worth approximately $12 billion. Both boards of directors have unanimously approved the merger.
Hempel Buys Wattyl from Sherwin-Williams
Danish coatings manufacturer Hempel has agreed to buy Wattyl, an Australian and New Zealand producer of architectural and protective paints and coatings, from owner Sherwin-Williams. Financial terms of the transaction, which is expected to close by the end of March, were not disclosed.
Ports of Antwerp and Zeebrugge to Merge
The Belgian cities of Antwerp and Bruges have agreed to merge their respective ports, with the former taking an 80.2% share in the combined port and Bruges taking 19.8%. The merger remains subject to a number of conditions, including approval from Belgian competition authorities.
Lanxess to Acquire Emerald Kalama Chemical
Germany’s Lanxess has signed a binding agreement to acquire 100% of Emerald Kalama Chemical from affiliates of private equity firm American Securities. The US specialty chemicals producer focused mainly on consumer markets last reported sales of $425 million and EBITDA pre-exceptionals of $90 million. Closing is expected in the second half of 2021, subject to regulatory approval.
China’s WuXi Buys Bristol Myers Squibb’s Swiss Plant
China contract development and manufacturing organization (CDMO) WuXi STA has agreed to buy Bristol Myers Squibb’s manufacturing facility in Couvet, Switzerland, for an undisclosed sum. The site will be WuXi STA’s first facility in Europe. The transaction is expected to complete during the second quarter, subject to the usual conditions and regulatory approvals.
Jazz Buys the UK’s GW Pharma
Ireland-based multinational drug company Jazz Pharmaceuticals is to buy UK biopharma GW Pharma for $7.2 billion, creating a leader in neuroscience. The boards of directors of both companies have unanimously approved the deal, which is expected to close in the second quarter, subject to customary conditions and regulatory approvals.
AkzoNobel Walks Away from Tikkurila
AkzoNobel has conceded defeat in its bid to buy Tikkurila, leaving the way clear for US rival PPG Industries to continue with its acquisition of the Finnish paints and coatings company.
Wacker Chemie to Buy California CDMO Genopis
German chemical producer Wacker Chemie is acquiring 100% of San Diego, California- headquartered CDMO Genopis from its two South Korean owners, Helixmith and Medivate Partner, both based in Seoul.
India’s Eternis Acquires Tennants Fine Chemicals
Indian aroma chemicals producer Eternis has acquired the UK’s Tennants Fine Chemicals and its wholly owned subsidiaries in Singapore and Shanghai, China, for an undisclosed sum. The deal is Eternis’ first acquisition outside of India.
DuPont Sells Clean Technologies to Consortium
DuPont has agreed to sell its Clean Technologies business for $510 million to an international private equity consortium, comprising BroadPeak Global, Asia Green Fund and The Saudi Arabian Industrial Investments Company (Dussur).
Brenntag Buys UK’s ICL Packed
Brenntag has strengthened its water treatment business in the UK with the acquisition of ICL Packed, its second purchase this year so far. Financial terms of the deal, which was signed and closed on the same day, were not disclosed.
Oqema Establishes Strategic Partnership with CB Chemie
In a move to strengthen its market position in Austria and expertise in specialties, Oqema has acquired a majority share in Austria-based CB Chemie.
Angelini Acquires Arvelle Therapeutics
Italy’s Angelini Pharma has entered into an agreement to acquire Swiss biopharma Arvelle Therapeutics in an all-cash transaction worth up to $960 million. The first $610 million will be paid following regulatory clearance of the deal, with a further $350 million paid if Arvelle’s epilepsy treatment cenobamate achieves certain revenue targets.
H.Essers: Negotiations for Acquisition of the Chemical Logistics Activities of the Dutch Meeus Group
Logistics service provider H.Essers, currently active in 19 countries from 77 locations, is in advanced negotiations for the acquisition of the logistics and transport activities of the Dutch Meeus Group.
Huntsman Sells Consumer Adhesives to Pidilite
Huntsman has agreed to sell its India-based Do-it-Yourself (DIY) consumer adhesives business, part of its Advanced Materials division, to Mumbai-based Pidilite Industries.
Novo Nordisk to Buy Emisphere Technologies
Danish drugmaker Novo Nordisk has agreed to buy US drug delivery company Emisphere Technologies for $1.8 billion.
Adama to Take Control of China’s Huifeng
Israeli crop protection producer Adama has entered into an agreement that will see it take a majority stake in most of Huifeng Bio Agriculture’s synthesis and formulation facilities.
Catalent to Acquire Belgium’s Bone Therapeutics
US-based CDMO Catalent has agreed to acquire Bone Therapeutics’ cell therapy manufacturing subsidiary, Skeletal Cell Therapy Support (SCTS), in Gosselies, Belgium, for $14 million.
Sanofi Strengthens Immunology with Kiadis Buy
French pharma Sanofi is boosting once again its immunology portfolio with an agreement to buy Dutch biotech Kiadis for €308 million.
Medera
F. Hoffmann-La Roche Ltd
Barfeld & Partner GmbH
Bachem
H.B. Fuller Company
Safic-Alcan
Deloitte
Süd Chemie
Johnson Matthey
BCG The Boston Consulting Group GmbH
Krahn Chemie
LyondellBasell
Novo Nordisk A/S
Oxea
Solvay
Ter Hell & Co. GmbH
Ashland
Cambrex Corporation
WE Soda Ltd
PPG
Novartis International AG
Saint-Gobain
Henkel AG & Co. KGaA
Catalent Inc.
Immedica Pharma AB
DCAT - Drug, Chemical & Associated Technologies Association
Olon S.p.A.
Alkermes
BASF SE
Advancy GmbH
Sanofi S.A.
Evonik Industries AG
HSH Chemie GmbH
Archroma
SchüllerConsulting
Syensqo
Wacker Chemie
Bayer AG
Biogen Inc.
OneSource Specialty Pharma Limited
Alantra
Merck & Co
LANXESS Deutschland GmbH
A.T. Kearney GmbH
Rhodia Europe
Managm. Consult. Chemicals
Maire Tecnimont SpA
KPMG AG Wirtschaftsprüfungsges.
Umicore AG & Co. KG
Lonza AG