16 May 2019
A global leader in specialty surfactants
ArrMaz offers tailored and sustainable solutions for
the specific and ever-changing needs of its customers
in a variety of industrial markets.
Thanks to its formulation expertise
and well-established leadership positions,
ArrMaz has forged long-term relationships
with major industrial customers,
leaders in their own fields,
to support their development.
Leader in several attractive niche markets,
ArrMaz’s growth
is driven by sustainable trends
such as
* limited natural resources,
* a growing world population, and
* development of new energy sources.
In the crop nutrition market, ArrMaz offers
innovative additives
that enhance the efficiency
and quality of fertilizer production
and distribution while promoting responsible farming.
In the mining market, it offers
a wide range of additives
to help optimize grade recovery
and process performance in mining operations,
thereby enabling
the most environmentally sound practices.
Moreover, in the infrastructure market,
ArrMaz supplies additives
that help improve road longevity, quality
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 state-of-the-art facilities.
It employs 400 employees and
operates 9 manufacturing sites around the world.
DETAILS
- The acquisition reinforces
our Performance Additives,
one of the three strong pillars within
the High Performance Materials division,
along with Adhesives and Technical Polymers
- ArrMaz specializes in
tailored and sustainable solutions
for attractive markets
driven by mega-trends and fast-growing countries
- The transaction will combine
Arkema’s and ArrMaz’s complementary expertise
in differentiated formulations,
technologies and geographic reach
for specialty surfactants
- The purchase price is based on
an enterprise value of US$570 million,
which corresponds to
an EV/EBITDA multiple of 10.8x
(~7x EBITDA 2023 including synergies)
- This acquisition of a profitable, resilient
and low capital intensive business
is another milestone
in Arkema’s growth journey towards specialties
Another milestone towards specialties
Arkema reaches another milestone
in its journey of growth
in specialties with the planned acquisition of
With US$290 million sales,
18% EBITDA margin and
around 2.5% of capex to sales,
ArrMaz is a US-based leader in specialty surfactants
for crop nutrition, mining and infrastructure.
The acquisition of this profitable, resilient
and low capital intensive business
is fully in line with
Arkema’s long-term ambition
to achieve over 80% of sales in specialties by 2023.
ArrMaz will be integrated in Performance Additives,
one of the three strong pillars
which will drive growth of
the High Performance Materials division, along with
Adhesives and
Technical Polymers
Combined with Arkema’s strong expertise
in formulation and specialty surfactants, this acquisition
will join two organizations that are highly complementary
in terms of geography as well as
commercial and technological capabilities.
Arkema will thus be well positioned
to accelerate its growth in legacy markets
and to enter new segments (additives for nutrients,
lithium extraction and oil & gas process aids),
with an expectation of delivering above-GDP growth.
A superior value creation
Beyond ArrMaz’s favorable organic growth profile,
significant and well-identified synergies,
which are expected to amount to
approximately US$15 million by 2023,
support the attractive economics of the acquisition.
They will pertain mostly to
purchasing and commercial complementarities
between Arkema and ArrMaz. Including these synergies
and ArrMaz’s organic growth,
the enterprise value / EBITDA multiple after 4 years
is expected to stand at around 7 times.
Finally, 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.
Completion of the transaction is expected
in the summer of 2019, subject to approval
by relevant antitrust authorities.
INVESTOR RELATIONS CONTACTS
Sophie Fouillat
+33 1 49 00 86 37
sophie.fouillat@arkema.com
Arié Taïeb
+33 1 49 00 72 07
arie.taieb@arkema.com
Peter Farren
+33 1 49 00 73 12
peter.farren@arkema.com
Béatrice Zilm
+33 1 49 00 75 58
beatrice.zilm@arkema.com
MEDIA CONTACTS
Gilles Galinier
+33 1 49 00 70 07
gilles.galinier@arkema.com
Véronique Obrecht
+33 1 49 00 88 41
veronique.obrecht@arkema.com
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