Solenis, Sigura | July 06, 2021
LOS ANGELES, Platinum Equity announced today that it has signed a definitive agreement to acquire Solenis, a leading global producer of specialty chemicals used in water-intensive industries, from Clayton, Dubilier & Rice ("CD&R") and BASF in a transaction that implies an enterprise value for Solenis of $5.25 billion.
As part of the transaction, Solenis is expected to merge with Sigura Water, an existing Platinum Equity portfolio company the firm acquired in 2019, for a total combined transaction value of approximately $6.5 billion. The combined company is expected to generate approximately $3.5 billion of revenue and serve a diverse range of customers around the world in consumer, industrial and pool water treatment markets.
Founded in 1907 and headquartered in Wilmington, Delaware, Solenis is a global leader in supplying 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.
"Global demand for solutions that save water, use less energy, eliminate waste, and convert everyday products to more sustainable materials is only continuing to grow," said Jacob Kotzubei, Partner at Platinum Equity. "As a leader in sustainability, Solenis has been helping its customers tackle these complex challenges for more than 100 years. It is an exceptionally well-run organization with an outstanding management team and a service-oriented culture.
We believe in the company's mission and we are excited to invest in its continued growth and expansion."
Solenis currently serves two primary segments: Consumer Solutions (consumer and food packaging, graphic paper, and tissue and towel markets) and Industrial Solutions (core water treatment and wastewater markets). Sigura's business is in the production and sale of water care solutions and value-added services for residential and commercial pool and spa applications as well as industrial markets.
Solenis is a leading global producer of specialty chemicals focused on delivering sustainable solutions for water-intensive industries, including the pulp, packaging paper and board, tissue and towel, oil and gas, petroleum refining, chemical processing, mining, biorefining, power and municipal markets. The company's product portfolio includes a broad array of water treatment chemistries, process aids, functional additives as well as state-of-the-art monitoring and control systems. These technologies are used by customers to improve operational efficiencies, enhance product quality, protect plant assets and minimize environmental impact. Headquartered in Wilmington, Delaware, the company has 41 manufacturing facilities strategically located around the globe and employs a team of approximately 5,000 professionals in 120 countries across five continents. Solenis is a 2021 US Best Managed Company.
Headquartered in Alpharetta, GA, Sigura is a leading provider of innovative water treatment solutions. The company maintains six production facilities throughout North America, South America, Europe and Africa, with 1,000 employees globally, located in all major regions. It features top consumer brands in the residential pool care market and strong positions in high-growth Industrial & Municipal water markets.
American Chemistry Council | July 15, 2021
A major industry group is urging Congress to enact a national recycled plastic standard, as well as to allow for the “rapid scaling” of the chemical recycling sector.
The American Chemistry Council (ACC) released an outline of five steps it thinks Congress should take to improve plastics recovery on July 13. It follows ACC's decision last autumn to endorse packaging taxes to enhance the United States' recycling infrastructure.
By 2030, at least 30% of the content must be recycled.
The first thing on the ACC list is a demand for a government policy mandating that all plastic packaging include at least 30% recycled plastic by 2030 through a "national recycled plastics standard."
Getting to that point, however, requires extra steps, according to ACC. According to the group, the 30% figure would need the recovery of 13 billion pounds of recycled plastic each year, which is currently not available. (The report does not clarify whether the 30% mandate applies to post-consumer, post-industrial, or both kinds of recycled content.)
According to the organization, a recent ICIS study found that chemical recycling (also known as “advanced recycling”) would be “essential to achieve ambitious recycling targets” such as the U.S. EPA's national recycling objective of 50% by 2030.
The American Chemistry Council (ACC) urges Congress to establish federal laws similar to those enacted in 14 states to simplify the regulatory environment for chemical recycling facilities. Louisiana was the most recent state to enact such legislation.
ACC has urged Congress to reject the Break Free From Plastic Pollution Act, in part because it contains a restriction on the development of new chemical recycling centers.
Are all material types treated the same?
The report also calls for national plastics recycling standards to establish a more uniform recycling system throughout the country, as well as a complete life cycle analysis of all materials to ensure policies are “developed based on facts and science, not ideology.”
Environmental groups, including Greenpeace, immediately condemned the recommendations, calling them a "plan to continue endless plastic production." ACC announced a series of plastics sustainability goals in 2018, including a target of recovering 100% of plastic packaging by 2040.
Celanese Corporation | April 01, 2022
Celanese Corporation, a global chemical and specialty materials company, announced the restructuring of their joint venture Korea Engineering Plastics Co. It is a joint venture of 50% by Celanese and 50% by Mitsubishi Gas Chemical Company, Inc. (MGC).
Celanese Corporation develops chemistry solutions and specialty materials used in most major industries and consumer applications. Celanese is headquartered in Dallas and employs approximately 8,500 people worldwide.
KEP will exclusively focus on manufacturing and supplying high-quality products to its shareholders. They will market them independently around the world. Due to this restructuring, Celanese will gain significant access to original equipment manufacturers in Asia and more direct participation in key markets outside of China.
“Celanese now has access to world-scale POM polymerization capabilities globally to achieve this restructuring. It has committed to providing access to approximately 70kta of POM production in Asia and corresponding global marketing rights. Through this restructuring, Celanese is enthusiastic about creating added value from its 50 percent stake in KEP. Celanese will also benefit from KEP’s technical manufacturing expertise and a broad product portfolio. The product portfolios will be marketed using Celanese’s project model, commercial teams, and global supply chain network.”
On this venture, Tom Kelly, Senior Vice President, Celanese Engineered Materials
After the restructuring is completed, Celanese and MGC will look into additional ways to influence KEP's manufacturing strengths, such as assessing the potential expansion of its polymer and compounding capabilities. In the final terms of the restructuring, Celanese agreed to sell land to KEP at its Ulsan, South Korea site, which KEP currently leases. It sold for a market value of approximately $10 million upon monetizing a non-strategic asset for Celanese and further solidifying KEP's presence in Ulsan.