Platinum Equity 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.
“Solenis and Sigura are highly complementary businesses and a fantastic fit with very little product or customer overlap,” said Todd Golditch, Managing Director at Platinum Equity.
“Together, the combined Solenis company will also have a world-class management team capable of driving market leadership and significant growth in the near- and long-term. We will also continue seeking new opportunities to grow the combined company through additional strategic M&A.”
Solenis CEO John Panichella will continue to lead the combined company following the transition and integration.
“Combining with Sigura will help bolster our scale, diversify our end markets and create attractive operational improvement opportunities to increase profitability. Sigura is an industry pioneer in the pool space with a well-deserved reputation for innovation, a portfolio of industry-leading brands in the pool space and a growing industrial business. We are thrilled to partner with Platinum and excited to welcome Sigura to the Solenis family,” said Mr. Panichella.
Sigura CEO Robert Baird will lead a new Pool Solutions division at Solenis once the merger is completed.
The acquisition of Solenis and merger with Sigura are expected to be completed before the end 2021, subject to regulatory approval and customary closing conditions.
The Valence Group of Piper Sandler is serving as exclusive financial advisor to Platinum Equity on the acquisition of Solenis. Gibson Dunn & Crutcher LLP is providing legal counsel and Willkie Farr & Gallagher LLP is providing debt financing counsel to Platinum Equity. BofA Securities and Goldman Sachs are leading the debt financing for the acquisition.