$12.7 billion! Chemical industry hits two big M&A deals in a week

Since the beginning of this year, despite the gloomy global economic situation, the chemical industry has not slowed down in the acquisition or sale of business. Entering March, within a week, two large-scale mergers and acquisitions exceeding US$4 billion occurred in the global chemical industry, with a total transaction value of US$12.7 billion.

Solenis acquires Diversey for $4.6 billion

On March 8, U.S. specialty chemical manufacturer Solenis announced that it will acquire Diversey in an all-cash transaction of approximately US$4.6 billion, which is expected to be completed in the second half of 2023.

Solenis, headquartered in Wilmington, Delaware, USA, is a manufacturer of specialty chemicals for water-intensive industries, acquired by Platinum Equity in 2021, with 49 manufacturing plants worldwide.

Diversey is a sanitation, infection prevention and cleaning solutions provider headquartered in Fort Mill, South Carolina, USA.

Solenis CEO John Panichella will lead the combined company after transition and integration. "By combining these two complementary businesses, we help clients address core challenges such as water and energy management, collaborate on sustainability issues, and contribute to a cleaner, safer world with reduced environmental impact," said Panichella.

Apollo Fund acquires Univar for $8.1 billion

On March 14, U.S. specialty chemicals and ingredients distributor Univar Solutions (Univar Solutions) and Apollo Global Management announced that they had entered into a definitive merger agreement in an all-cash transaction for the Apollo Fund, managed by an Apollo affiliate Way to acquire Univar, the transaction is valued at approximately US$8.1 billion.

Under the agreement, Univar Solutions shareholders will receive $36.15 in cash per share. The transaction is expected to close in the second half of 2023. Upon completion of the transaction, Univar Solutions will continue to operate under its original name and brand.

As a distributor, Univar repackages, blends, stores and ships chemicals for more than 100,000 customers. The company will generate $545 million in profit on sales of $11.5 billion in 2022. Of these, about two-thirds of sales are in the United States.