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November 2017
April 2018 Industry snapshot
CHEMICALS AND PLASTICS
www.clairfield.com
INSIDE
• Market highlights
• Key players
• Deal volumes
• About Clairfield
2
CHEMICALS SNAPSHOT APRIL 2018
HIGHLIGHTS The global chemicals sector is undergoing a transformation, with large mergers and acquisitions becoming the norm, as consolidation accelerates across the sector producing a steady volume of M&A. Pressure from APAC, specifically China, is driving large European and American groups to acquire niche speciality targets in order to give them the edge over their ever growing Asian rivals.
Deals such as the $66bn acquisition of Monsato by Bayer, and the merger of Dow Chemicals and Du Pont demonstrate that the US and Europe’s largest chemicals groups are driving consolidation in the market to unseen levels. In order to purse growth APAC players are developing their portfolio by entering traditionally monopolistic markets through acquisitions, as demonstrated by ChemChina’s $43bn purchase of Swiss Agri chemicals group Sygenta.
As competition has increased throughout the decade, we have seen global revenues flatline, with only minor growth predicted to 2020. After high growth in 2010 and 2011, the market has stalled leaving chemical groups to find growth through acquisitions rather than organically, supporting global M&A volumes and leaving the largest groups in touch of $100bn in revenue.
In the small cap market, companies are increasingly focused on niche areas of the market to produce attractive returns in the face of large competition. These businesses are offering highly specific products protected by intellectual property rights, highly complex chemistries, and high service levels. SIMON LLOYDBOTTOM
DIRECTOR
CHRIS GREGORY
PARTNER AND INDUSTRIAL SECTOR
HEAD
GLOBAL CHEMICALS DEALS GLOBAL CHEMICALS MARKET REVENUES
Source: CEFIC Facts Figures report 2011-2017
0
100
200
300
400
500
600
700
2010 2011 2012 2013 2014 2015 2016 2017
No
. of D
eal
s
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2010 2011 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E
EUR
bn
CAGR 5.4%
CAGR 2.8%
Source: S&P CapitalIQ
ALEX TOSO
OPERATING PARTNER AND SECTOR
EXPERT
3
CHEMICALS SNAPSHOT APRIL 2018
SELECTED RECENT MIDMARKET TRANSACTIONS (EUR MILLION) LISTED CHEMICALS EV/EBITDA
LISTED CHEMICALS EV/SALES
DATE TARGET COUNTRY BUYER COUNTRY SECTOR EV EV/SALES EV/EBITDA
Dec 17 Spain Ireland Polymers/
Construction Chemicals
250 0.9 7.6
Nov 17 Germany South Africa
Agri Chemicals
110 0.9 7.5
Nov 17 USA Italy Diversified 39 1.2 12.1
Oct 17 Canada USA Dyes, Paints & Pigments
55 - 8.0
Mar 17 Belgium UK Polymers 78 2.1 8.6
Jan 17 USA USA Adhesives, Coatings &
Resins 114 1.2 11.1
6.6
14.0
10.9
11.4
10.4
11.0
0 2 4 6 8 10 12 14 16
Dyes, Inks & Pigments
Fragrances, Cosmetics & Flavour
Adhesives, Coatings & Resins
Polymers
Distribution
Diversified
0.8
2.5
2.0
2.7
0.7
2.1
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Dyes, Inks & Pigments
Fragrances, Cosmetics & Flavour
Adhesives, Coatings & Resins
Polymers
Distribution
Diversified
Average:
1.8x
Average:
10.7x
4
was sold to
UK
PLASTICS
CLAIRFIELD TRACK RECORD IN CHEMICALS
CHEMICALS SNAPSHOT APRIL 2018
UK
ALEX TOSO
GERMANY
JACK HELM
US
CROSBY O’HARE
GERMANY
OLIVER KOLB
NETHERLANDS
RUUD VAN HOEK
ITALY
SILVERIO DAVOLI
SPAIN
BRIAN O’HARE
acquired
Germany/US
COATINGS
acquired
Spain
DISTRIBUTION
sold to
UK
COATINGS
was sold to
Italy
PLASTICS
acquired
US
FOOD CHEMICALS
was sold to
France/Czech Republic
PLASTICS
was sold to
UK
INDUSTRIAL
Germany/US
PLASTICS
was sold to
UK
COATINGS
was sold to
UK
RESINS
UK/Italy
PIGMENTS
CLAIRFIELD CHEMICALS TEAM
acquired
Manufacturing facilities
Coating Resins business Polyester Resins business
acquired
SILO S.p.A
UK
CHRIS GREGORY
UK
SIMON LLOYDBOTTOM
5
Strategic advisory
Financial restructuring
advisory services
Valuations and fairness
opinions
Regulated industry
advisory
Employee stock options
plans
Capital markets advisory
Equity advisory:
strategic investor
relations, new issue
advisory (IPO,
capital raising)
Debt advisory:
financial structuring and
capital raising
Family business advisory
Succession planning
Handing over the
company within or
outside the family
Valuation
Strategic positioning
Corporate governance
Family code
Mergers & Acquisitions
Design, initiation, and
execution of international
and domestic acquisition
opportunities
International and domestic
management and execution
of buy- and sell-side
mandates
Advisory on mergers and
joint ventures
WE PROVIDE TOP-NOTCH ADVICE TO FAMILY BUSINESSES, MULTINATIONAL CORPORATIONS AND FINANCIAL
INVESTORS ON MERGERS, ACQUISITIONS, AND SALES AS WELL AS ADDITIONAL CORPORATE FINANCE
SERVICES.
WHAT WE DO
6
CLAIRFIELD – A GLOBAL PARTNERSHIP OF M&A SPECIALISTS
Clairfield International provides advisory services on middle-market transactions for large companies, private investors and private equity, public sector clients, and family businesses. Headquartered in Europe with locations in every major region worldwide, Clairfield offers clients access to local corporate businesses, investors, and key decision makers, combined with a deep understanding of local regulations and cultures. Clairfield ranks as one of the top independent M&A advisors in the annual worldwide, European, US, Latin American, and Asian Pacific league tables by Thomson Reuters. DISCLAIMER: No part of this report may be reproduced without the written permission of Clairfield International. The information herein has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy or completeness. Much of the information contained in this report is subject to variation due to changes in market conditions, legislation or regulatory matters and Clairfield International does not undertake to notify any recipient of the report of changes to the information contained herein. This report is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. Additional supporting information is available upon request. Please contact: Press office, Clairfield International, Tel: +41 22 518 0242 , [email protected]
WORLDWIDE PRESENCE
80% OF OUR WORK IS
CROSSBORDER RANKED AT THE
TOP
OF INDUSTRY
LEAGUE TABLES
400+ PROFESSIONALS
Contact
Chris Gregory
Partner
T: +44 121 234 6070
www.clairfield.com
6
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