Sector News

Arkema acquires US specialty surfactants producer ArrMaz for $570 million

May 16, 2019
Chemical Value Chain

Arkema announced today that it is to acquire ArrMaz Products (Mulberry, Florida), a producer of specialty surfactants for crop nutrition, mining and infrastructure, from Golden Gate Capital for $570 million. ArrMaz has sales of some $290 million, an EBITDA margin of 18% and around 2.5% of capex to sales. The acquisition reinforces Arkema’s specialty chemicals portfolio. Arkema has identified synergies of some $15 million by 2023, mainly in the purchasing and commercial fields. The acquisition is expected to have an accretive impact on cash and earnings per share from the first year of integration and will contribute to the group’s 2020 and 2023 objectives.

The purchase price corresponds to an enterprise value to EBITDA multiple of 10.8x, or, including synergies, about 7x 2023 EBITDA. Arkema says the acquisition is in line with its ambition to achieve over 80% of sales in specialties by 2023.

ArrMaz will be integrated into performance additives, one of the three pillars which will drive growth of Arkema’s high performance materials division, along with adhesives and technical polymers. ArrMaz provides tailored solutions for its customers in a variety of industrial markets. In the crop nutrition market, ArrMaz offers additives that enhance the efficiency and quality of fertilizer production and distribution and in the mining market, it supplies a wide range of additives to help optimize grade recovery and process performance in mining operations. In the infrastructure market, ArrMaz supplies additives that help improve road longevity and recyclability.

ArrMaz has built an extensive commercial presence in North America, South America, Asia and in the fast-growing regions of the Middle East and Africa, where it recently opened new facilities. The company employs 400 people and operates nine manufacturing sites worldwide. Combined with Arkema’s expertise in formulation and specialty surfactants, the acquisition is highly complementary in terms of geography as well as commercial and technological capabilities, Arkema says, adding that following the acquisition it will be well positioned to accelerate growth in legacy markets and enter new segments, such as additives for nutrients, lithium extraction and oil & gas process aids.

Completion of the transaction is expected in the summer of 2019, subject to approval by relevant antitrust authorities. The Valence Group was Arkema’s adviser.

By Natasha Alperowicz

Source: Chemical Week

comments closed

Related News

January 22, 2023

Ineos to Acquire MBCC’s Admixtures Business

Chemical Value Chain

Ineos Enterprises has signed an agreement to buy MBCC Group’s admixture business from Sika. The deal is required by European antitrust regulators to approve Sika’s purchase of the MBCC Group, formerly BASF Construction Chemicals. The transaction is scheduled to complete in the first half of this year, subject to regulatory approvals.

January 22, 2023

Carbios and Novozymes strengthen partnership for PET bio-recycling

Chemical Value Chain

Carbios and Novozymes are entering an exclusive long-term global strategic partnership to ensure the production and supply of Carbios’ proprietary PET-degrading enzymes at an industrial scale. Together the companies will build the world’s first biological PET-recycling plant due to start production in 2025 in Longlaville, France, as well as Carbios’ future licensee customers.

January 22, 2023

Borealis adds crosslinked PE to circular portfolio

Chemical Value Chain

Pyrolysis process keeps difficult-to-recycle crosslinked polyethylene like XLPE and PE-X in the circular loop. Chemically recycled grades in the Borcycle™ C portfolio are ISCC PLUS certified according to the mass balance methodology. EverMinds™ approach provides innovative and viable solutions to recycling challenges in the Wire & Cable and Infrastructure industries.

How can we help you?

We're easy to reach