Element Solutions Inc. Announces Plans to Acquire Coventya
Element Solutions Inc, Coventya | June 14, 2021
Element Solutions Inc., a global and diversified specialty chemicals company, announced today that it had made a binding offer to acquire Coventya Holding SAS, a global provider of specialty chemicals for the surface finishing industry. Under the terms of the offer, Element Solutions will pay approximately €420 million in cash, including the assumption or repayment of the debt, subject to certain adjustments. The transaction is expected to close in late Q3 or Q4 2021, subject to receipt of certain regulatory approvals, completion of required employee consultation procedures, and other customary closing conditions. Upon closing the transaction, Coventya will join MacDermid Enthone Industrial Solutions and will be reported within the Company’s Industrial & Specialty segment.
Coventya is a global specialist in developing metal finishing chemical technologies with various solutions that provide decorative and functional coatings for industrial end markets in over 60 countries. The business has manufacturing facilities in Asia, Europe, and the Americas, and its products serve customers globally across automotive, fashion, construction, electronic, consumer goods, energy, and aerospace/military end-markets. Coventya is expected to generate annual sales of approximately €160 million and adjusted EBITDA of more significant than €30 million for its fiscal year 2021, ending in September. On a pro forma basis, after giving effect to expected annualized synergies, the proposed purchase price represents less than 10x Coventya’s projected fiscal year 2021 adjusted EBITDA.
About Element Solutions Inc
Element Solutions Inc is a leading specialty chemicals company whose businesses supply a broad range of solutions that enhance the performance of products people use every day. Developed in multi-step technological processes, these innovative solutions enable customers’ manufacturing processes in several key industries, including consumer electronics, power electronics, semiconductor fabrication, communications and data storage infrastructure, automotive systems, industrial surface finishing, consumer packaging, and offshore energy.
About Coventya
Coventya is an international company that develops, manufactures, and distributes specialty chemicals for the surface finishing industry in over five continents and 60 countries. With a rich and diverse history dating back to 1927, Coventya is considered a global market leader in innovation and customer support.