Chemicals company Solenis will be acquired by Platinum Equity from current investors Clayton, Dubilier & Rice (CD&R) and BASF.
The deal is expected to close before the end of 2021 and implies an enterprise value for Solenis of $5.25 billion.
CD&R and Solenis management currently collectively own 51 per cent of Solenis, and chemical company BASF holds the remaining 49%. Both CD&R and BASF will fully exit Solenis as part of the sale.
Founded in 1907 and headquartered in Wilmington, Delaware, Solenis supplies innovative specialty chemicals and services for process, functional and water treatment applications to consumer and industrial markets.
The company’s global footprint spans across 120 countries and five continents, and comprises over 5,200 employees and 41 manufacturing facilities.
CD&R funds acquired a majority stake in Solenis from Ashland, Inc. in a July 2014 transaction that attached an enterprise valuation of $1.8 billion to Solenis.
In 2019, Solenis merged with BASF’s paper and water chemicals business, creating a solutions provider for the pulp and paper and water treatment industries.
Under CD&R’s ownership, Solenis expanded its presence in the market and increased its customer base.
“We’re proud to have supported Solenis’ growth strategy and have enjoyed working alongside the company’s talented team since our initial investment in 2014,” says Stephen Shapiro, CD&R partner.
“This transaction is a strong validation of the growth and success we have achieved over the last seven years under CD&R ownership,” says John Panichella, chief executive officer of Solenis.
“We thank the CD&R team for its support, which has positioned us well for this exciting next phase of growth with our new investment partners at Platinum.”
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