industry insights: q1 2020...

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ContentsIndustry Overview………...…….….……………Transaction Activity……………………………Transaction Multiples……………………….....Public Company Comparable Analysis………Active Buyers…...…………………….…........Precedent Transactions Analysis…………….

145 6 7 8

COVID-19 has had a domino effect on the chemicalsindustry, creating significant uncertainty andopportunity.

During the first quarter of 2020, there were 43 M&Atransactions within the chemicals industry thatclosed. Commodity chemicals led in terms oftransaction volume (35), transacting at an averageEV/EBITDA multiple of 9.1x. Looking at the LTMperformance of the chemicals industry relative to theS&P 500, each sector underperformed the S&P 500,with commodity chemicals hit the hardest, down45.3%. Historically, the chemicals industry hasoutperformed the market. When the economy beginsto recover, the chemicals industry has consistentlyrecovered quicker than others, however in times ofeconomic downturn, the industry is among the first tobe impacted.

The abrupt oversupply and imbalances from supplychain disruptions and demand shocks have causedmany to restructure proactively and decisively,scaling back investments and looking for alternativerevenue drivers (such as asset sales). COVID-19has been a wakeup call that has caused many toreconsider their existing supply chain and rebalanceresilience and costs. In response, some chemicalscompanies have started relocating and ramping-upproduction of critical chemicals closer to end-customers. Chemicals companies with exposure toautomotive and consumer products sectors haveseen a drop in demand for chemicals by 30%, whilethose exposed to pharmaceuticals, food additives,and disinfectants are reporting record outboundorders. Trade conflicts were already impactingsupply chains and the “deglobalization” trend is nowaccelerating, with the agricultural chemicals sectorexpected to see a surge in growth, as governmentscontemplate policy changes to ensure security inregional food webs.

The market witnessed three multi-billion-dollartransactions in the first quarter of 2020 – theacquisition of the Integrated Oxides and DerivativesBusiness of Huntsman International LLC byIndorama Ventures Holdings LP for $2.0 billion, theacquisition of the Polyamide Business of Solvay SAby BASF SE (XTRA:BAS) for $1.4 billion and theacquisition of Innophos Holdings, Inc. by Iris ParentLLC for $1.0 billion. Additionally, a few notabletransactions were announced: the acquisition ofBorealis AG by OMV Refining & Marketing GmbH for$2.3 billion; the acquisition of the Cimcool Businessof Milacron LLC by DuBois Chemicals, Inc. for $250million; and the acquisition of Ellison SurfaceTechnologies, Inc by Bodycote plc for $200 million.

Chemicals M&A will remain active throughout 2020,although bearish in the short-term, evident by thenumerous deals pulled or delayed in recent weeks.Ongoing industry restructuring is expected tocontinue, accelerated due to COVID-19, with morecompanies carving-out non-core assets in favor ofcore high-margin products. Chemicals valuationsremain elevated but are anticipated to narrow,creating an opportunity for strategic and financialbuyers.

There may be a slowdown in M&A activity fromlarge-cap buyers as their share prices recover, withsmall- and mid-cap strategic buyers and financialbuyers leading the next M&A wave. Although mostcompanies are reluctant to spend cash in the short-term, as the dust settles over the next 3 to 9 months,expect an uptick in M&A activity. Opportunisticbuyers are waiting on the sidelines, ready to come inand pick up the pieces, with those sitting on a lot ofcash well-positioned to pursue previously unavailabledeals, actionable at bargain prices.

Industry Insights: Q1 2020Chemicals

1 Source(s): S&P Capital IQ, Pitchbook, ICIS, McKinsey, BCG2 Number of closed transactions only include transactions with disclosed transaction values.

Number of Closed Transactions1,2 Total Transaction Value ($bn)1 Transaction EV/EBITDA Multiples1

Industry OverviewQuarterly Performance

10.7x9.2x 9.1x

9.9x8.4x

9.5x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

19Q1 19Q2 19Q3 19Q4 20Q1 Average

$21.6

$8.6

$13.5$10.7 $11.9 $13.3

$0

$5

$10

$15

$20

$25

19Q1 19Q2 19Q3 19Q4 20Q1 Average

44 4148

55

43 46

0

10

20

30

40

50

60

19Q1 19Q2 19Q3 19Q4 20Q1 Average

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Industry Performance

1 Source(s): S&P Capital IQ, Pitchbook3 PEG = industry P/E ratio divided by the industry LT Growth (%) estimate.

Stock Price PerformanceLTM Relative Stock Performance1

PEG RatioLTM PEG Ratio1,3

(23.4%)

(16.6%)

(45.3%) (40.1%)

(27.8%)

(9.9%)

(70.0%)

(60.0%)

(50.0%)

(40.0%)

(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%

Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20

Agricultural Chemicals Chemical Distribution Commodity Chemicals Diversified Chemicals Specialty Chemicals S&P 500

1.09x

0.95x

2.48x

1.01x

1.94x

1.48x

0.00x

1.00x

2.00x

3.00x

4.00x

5.00x

6.00x



2



Industry Multiples

1 Source(s): S&P Capital IQ, Pitchbook

EV/EBITDALTM EV/EBITDA Multiples1

EV/RevenueLTM EV/Revenue Multiples1

8.18x

9.83x

5.79x

6.75x

12.32x

11.81x

0.00x

2.00x

4.00x

6.00x

8.00x

10.00x

12.00x

14.00x

16.00x

18.00x



1.65x

0.79x0.91x

1.35x

2.47x

2.24x

0.00x

0.50x

1.00x

1.50x

2.00x

2.50x

3.00x

3.50x



3



Transaction Activity

1 Source(s): S&P Capital IQ, Pitchbook2 Number of closed transactions only include transactions with disclosed transaction values.

Transaction VolumeNumber of Closed Transactions1,2

Transaction Activity by Geographic RegionNumber of Closed Transaction by Geographic Region1

63

77

85

94

8589

86

110

8378

63

96

80

71 73

90

72

99

71

127

89

97

84

93

76

69

83

112

7974

81 8287

58

46

67

4441

48

55

43

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

0

20

40

60

80

100

120

140

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Tota

l Tra

nsac

tion

Valu

e ($

mm

)

Num

ber

of C

lose

d Tr

ansa

ctio

ns

Number of Closed Transactions Total Transaction Value ($mm)

0%

20%

40%

60%

80%

100%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Perc

ent o

f Clo

sed

Tran

sact

ions

United States and Canada Europe Asia / Pacific Latin America and Caribbean Africa / Middle East

The Dow Chemical Company (NYSE:DOW) completed the acquisition of E.I. du Pont de

Nemours and Company (NYSE:DD).

Bayer AG (DB:BAYN) completed the acquisition of Monsanto

Company (NYSE:MON).

4



Transaction Multiples


Transaction EV/EBITDA MultiplesTransaction EV/EBITDA Multiples1

Transaction EV/Revenue MultiplesTransaction EV/Revenue Multiples1

12.9

x

13.3

x

15.5

x

11.3

x

7.6x

7.2x

8.7x

8.7x

8.2x

15.8

x

11.2

x

11.5

x

6.8x

11.0

x

9.0x

6.4x

6.4x

7.3x

11.4

x

9.3x

8.6x

14.5

x

11.8

x

12.1

x

10.1

x

11.5

x

9.1x

10.0

x

10.4

x

10.2

x

10.3

x

9.3x

10.5

x

9.1x

9.1x 9.

6x

12.6

x 13.1

x

13.1

x

18.1

x

13.5

x

7.4x

11.3

x

13.7

x

7.8x

12.5

x

11.5

x

11.8

x

12.2

x

10.7

x

9.2x

9.1x

9.9x

8.4x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

20.0x

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2018 2019 2020

Agricultural Chemicals Chemical Distribution Commodity Chemicals Diversified Chemicals Specialty Chemicals Average

2.9x

3.3x

3.6x

4.0x

1.3x

1.2x

0.9x

1.1x

1.1x

0.5x

1.5x

1.0x

4.4x

1.0x

2.2x

0.7x

0.7x

0.5x

1.6x

2.1x

1.8x

3.7x

1.4x

2.6x

1.4x

1.3x

1.9x

1.7x 1.

7x

1.7x 1.7x

1.7x

1.7x

2.1x

2.1x

2.0x

2.4x

3.3x

1.5x

3.6x

3.1x

1.2x

1.8x

1.8x

0.9x

1.8x

2.4x

1.9x

3.5x

1.7x 1.8x

1.4x

1.4x

1.2x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

4.5x

5.0x

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2018 2019 2020

Agricultural Chemicals Chemical Distribution Commodity Chemicals Diversified Chemicals Specialty Chemicals Average

5



Public Company Comparable Analysis

1 Source(s): S&P Capital IQ, Pitchbook4 Market Capitalization as of 03/31/205 Adj. mean excludes high and low values.

Agricultural ChemicalsPublic Company Comparable Analysis – Agricultural Chemicals ($mm)1

Chemical DistributionPublic Company Comparable Analysis – Chemical Distribution ($mm)1

Commodity ChemicalsPublic Company Comparable Analysis – Commodity Chemicals ($mm)1

Diversified ChemicalsPublic Company Comparable Analysis – Diversified Chemicals ($mm)1

Specialty ChemicalsPublic Company Comparable Analysis – Specialty Chemicals ($mm)1

CompanyMarket

Capitalization4Enterprise

Value LTM REVENUE LTM EBITDA NTM EBITDA LTMEV/EBITDA

NTMEV/EBITDA

American Vanguard Corporation (NYSE:AVD) $436 $590 $468 $49 $57 12.0x 10.4xCF Industries Holdings, Inc. (NYSE:CF) 5,880 12,573 4,590 1,811 1,520 6.9x 8.3xCorteva, Inc. (NYSE:CTVA) 17,608 16,773 13,846 2,047 2,148 8.2x 7.8xFMC Corporation (NYSE:FMC) 10,574 13,717 4,610 1,221 1,292 11.2x 10.6xSociedad Química y Minera de Chile S.A. (NYSE:SQM) 5,935 6,727 1,944 634 717 10.6x 9.4xThe Mosaic Company (NYSE:MOS) 4,098 8,570 8,906 1,346 1,341 6.4x 6.4xSummary Statistics

Mean $7,422 $9,825 $5,727 $1,185 $1,179 9.2x 8.8xAdj. Mean5 6,622 10,397 5,012 1,253 1,217 9.2x 9.0x

Median 5,907 10,571 4,600 1,283 1,316 9.4x 8.8x

CompanyMarket



NTMEV/EBITDA

Brenntag AG (XTRA:BNR) $5,227 $7,343 $12,822 $872 $965 8.4x 7.6xIMCD N.V. (ENXTAM:IMCD) 3,398 4,133 2,705 223 243 18.5x 17.0xITOCHU Corporation (TSE:8001) 3,341,952 7,676,374 11,234,213 758,364 809,039 10.1x 9.5xMitsubishi Corporation (TSE:8058) 3,416,596 9,544,886 15,344,984 707,084 879,029 13.5x 10.9xSumitomo Corporation (TSE:8053) 1,547,810 4,732,613 5,440,984 371,272 398,791 12.7x 11.9xUnivar Solutions Inc. (NYSE:UNVR) 1,810 4,380 9,287 582 638 7.5x 6.9xSummary Statistics

Mean $1,386,132 $3,661,622 $5,340,832 $306,399 $348,118 11.8x 10.6xAdj. Mean5 1,224,597 3,105,178 4,174,326 269,952 302,359 11.2x 10.0x

Median 776,518 2,369,978 2,726,903 186,072 199,878 11.4x 10.2x

CompanyMarket



NTMEV/EBITDA

Braskem S.A. (BOVESPA:BRKM5) $13,947 $48,649 $52,324 $918 $7,369 53.0x 6.6xDow Inc. (NYSE:DOW) 21,716 39,312 42,951 6,642 5,841 5.9x 6.7xLyondellBasell Industries N.V. (NYSE:LYB) 16,554 29,395 34,727 5,485 4,751 5.4x 6.2xOrbia Advance Corporation, S.A.B. de C.V. (BMV:ORBIA *) 53,540 138,678 6,987 1,341 1,343 103.5x 103.3xOlin Corporation (NYSE:OLN) 1,842 5,344 6,110 863 698 6.2x 7.7xWestlake Chemical Corporation (NYSE:WLK) 4,901 8,625 8,118 1,351 1,178 6.4x 7.3xSummary Statistics


Median 15,250 34,354 21,423 1,346 3,047 6.3x 7.0x

CompanyMarket



NTMEV/EBITDA

Arkema S.A. (ENXTPA:AKE) $4,819 $6,501 $8,738 $1,380 $1,317 4.7x 4.9xBASF SE (XTRA:BAS) 39,628 57,014 59,316 7,068 7,949 8.1x 7.2xEastman Chemical Company (NYSE:EMN) 6,330 12,177 9,273 1,860 1,796 6.5x 6.8xHuntsman Corporation (NYSE:HUN) 3,217 5,644 6,797 712 690 7.9x 8.2xSolvay SA (ENXTBR:SOLB) 6,864 10,396 11,227 2,107 2,068 4.9x 5.0xThe Chemours Company (NYSE:CC) 1,455 4,989 5,526 335 1,011 14.9x 4.9xSummary Statistics


Median 5,574 8,449 9,006 1,620 1,556 7.2x 5.9x

CompanyMarket



NTMEV/EBITDA

Akzo Nobel N.V. (ENXTAM:AKZA) $11,802 $12,822 $9,276 $1,117 $1,433 11.5x 8.9xClariant AG (SWX:CLN) 5,357 6,875 4,399 454 731 15.1x 9.4xDuPont de Nemours, Inc. (NYSE:DD) 25,213 42,243 21,512 5,181 5,037 8.2x 8.4xFerro Corporation (NYSE:FOE) 770 1,528 1,018 137 163 11.1x 9.4xH.B. Fuller Company (NYSE:FUL) 1,436 3,387 2,871 388 398 8.7x 8.5xRPM International Inc. (NYSE:RPM) 7,721 10,334 5,649 728 873 14.2x 11.8xSummary Statistics

Mean $8,716 $12,865 $7,454 $1,334 $1,439 11.5x 9.4xAdj. Mean5 6,579 8,354 5,549 672 859 11.4x 9.1x

Median 6,539 8,604 5,024 591 802 11.3x 9.2x

6



Active Industry Buyers


Strategic BuyersActive Strategic Buyers - Chemicals1

Financial BuyersActive Financial Buyers - Chemicals1

Acquiring Company Announced Closed TargetMar-20 Mar-20 Abrasive Products & Equipment, LLCFeb-19 Feb-20 Global Plastics LPJan-20 Jan-20 Deltech Resin (Remainder of Select Portfolio of Alkyd Resins)Oct-19 Oct-19 Deltech Resin (Select Portfolio of Alkyd Resins)Apr-18 Apr-18 Royce International, LLCNov-17 Nov-17 Ranbar Electrical MaterialsDec-15 Dec-15 InChem Corporation (Phenoxy Resins Business)Dec-15 Dec-15 BASF Corporation (Versamid Product Line)Jan-20 Jan-20 LifeLast Inc.Jan-20 Jan-20 Highland International, Inc.Jan-20 Jan-20 Flame Control Coatings, LLCJan-20 Jan-20 US Coatings, Inc.Nov-19 Dec-19 Heidelberger Druckmaschinen Aktiengesellschaft (Hi-Tech Coatings Division)Sep-19 Sep-19 IdeaPaintFeb-19 Feb-19 TPR2 (Fireshell, Heat Shedder, FireSafe and Structure Saver Brands)Jan-16 Feb-16 3M (Pressurized Polyurethane Foam Adhesives Business)Nov-19 Nov-19 Polymer Solutions Group (Polymer Additives Division)Sep-17 Oct-17 Vantage Specialty ChemicalsMar-17 Mar-17 DuBois ChemicalsDec-16 Jan-17 OMG Borchers GmbHJun-19 Nov-19 Covestro AG (European Polyurethane Systems Business)Sep-18 Sep-18 RecochemAug-19 Oct-19 GEON Performance SolutionsDec-17 Mar-18 Perimeter SolutionsJun-17 Jun-17 Foremark Performance ChemicalsJun-17 Jun-17 Tri-Tex co inc.Aug-19 Aug-19 Epoxies, Etc.Jul-19 Jul-19 PolyCom Industries / Eco DispersionsSep-18 Sep-18 W.F. Taylor, LLCSep-18 May-18 Evans Adhesive Corporation, Ltd.

SK Capital Partners

Meridian Adhesives Group(Arsenal Capital Partners)

Marco Group International, Inc.(The CapStreet Group, LLC )

Gabriel Performance Products(Audax Management Company)

Seal for Life Industries(Arsenal Capital Partners)

Innovative Chemical Products Group(Audax Management Company)

The Jordan Company

H.I.G. Capital

Acquiring Company Announced Closed TargetFeb-20 Mar-20 Alpha Coating Technologies LLCJan-20 Feb-20 INDUSTRIA CHIMICA REGGIANA - I.C.R. S.p.ANov-19 Oct-19 Texstars, LLCJul-19 Jul-19 Dexmet CorporationJan-20 Mar-20 c-m-p gmbhFeb-20 Mar-20 Manufacturing Facilities And Other Assets Of Minger Plastic AGDec-19 Pending Mauvilac Industries LtdMar-20 Mar-20 Akzo Nobel Boya Sanayi Ve Ticaret Anonim SirketiJul-19 Nov-19 Mapaero SASDec-18 Dec-18 Akzo Nobel Swire Paints Ltd.Mar-20 Pending Innovativehealth GROUP,S.L.Nov-18 Feb-20 PeroxyChem LLCJan-20 Feb-20 Wilshire Technologies Inc.Sep-19 Sep-19 Interface Biologics, Inc. (Surface Modification Business)Feb-20 Feb-20 Robertet SANov-19 Feb-20 Ungerer & Company, Inc.Aug-19 Aug-19 Givaudan SAMay-19 Sep-19 Golden Frog flavor & fragranceSep-17 Jan-20 Solvay SA(Polyamide Business)Sep-19 Sep-19 UBench International NV/CarRoll/DLightNov-19 Pending DCS Pharma AGJan-20 Jan-20 ZIFRONI Chemical Suppliers Ltd.Nov-19 Dec-19 Whawon Pharm Co.,LtdNov-19 Nov-19 Unired Químicas S.A.S.Dec-19 Dec-19 Shandong Luxin Mount Tai Co.Nov-17 Nov-17 Micron-Ita Indústria e Comércio de Minerais Ltda.Dec-19 Dec-19 Corteva (Select Herbicide Brands)Jan-19 Jan-19 DowDuPont Inc. (Quizalofop Product Line)

Evonik Industries AG

Givaudan SA

BASF SE

IMCD N.V.

Imerys S.A.

American Vanguard Corporation

PPG Industries, Inc.

Mitsubishi Chemical Advanced Materials AG

Akzo Nobel N.V.

7



8

Precedent Transactions Analysis


Transaction ActivityRecently Closed Transaction - Chemicals1

Date Closed Target Target Description Acquiring Company Transaction

ValueLTM

EV/RevenueLTM

EV/EBITDA

Announced Borealis AG Produces and distributes polyolefins and base chemicals worldwide.

OMV Refining & Marketing GmbH $2,340 1.1x 6.5x

Announced Milacron LLC(Cimcool Business)

The Business comprises metalworking fluids assets in the United States.

DuBois Chemicals, Inc. 250 N/A N/A

Announced CVC Thermoset Specialties, Inc. Manufactures and sells specialty epoxy resins.

Huntsman Corporation 300 2.6x 10.0x

Announced Qatar Fertiliser Company (S.A.Q.) Produces, sells, and exports fertilizers. Qatar Petroleum 1,000 N/A N/A

Announced Ellison Surface Technologies, Inc Manufactures thermal spray coating and performance coating solutions.

Bodycote plc 200 4.0x N/A

Mar-20 Japan U-Pica Company,Ltd. Manufactures and sells resins. Mitsubishi Gas Chemical Company, Inc.

27 0.3x 7.1x

Mar-20 Zhejiang Double Arrow Rubber Co., Ltd.

Manufactures and sells rubber conveyor belts in China and internationally.

Tongxiang Urban Construction Investment Co., Ltd.

23 1.9x 10.0x

Mar-20 Irplast S.p.A. Manufacturers simultaneous bi-oriented polypropylene film.

Cheyne Capital Management (UK) LLP

107 1.0x 11.6x

Mar-20 Innovia Poland Manufactures biaxially oriented and cast polypropylene films.

CCL Industries Inc. 17 0.3x 6.0x

Mar-20Jiangsu Jinma Oil Technology Development Co., Ltd.

Poduces fatty acids, polyamide resins, rectified oleic acids, stearic acids, dimer acids, and polyamide resins.

Zanyu Technology Group Co., Ltd. 15 0.7x N/A

Mar-20Minger Plastic AG(Manufacturing Facilities)

The Manufacturing Facilities provide engineering plastic recycling services in Swaziland.

Mitsubishi Chemical Advanced Materials AG N/A N/A N/A

Mar-20 c-m-p gmbh Manufactures customised prepregs and textiles made of carbon and other fibres.

Mitsubishi Chemical Advanced Materials AG

21 N/A N/A

Mar-20 Trion Chemicals Private Limited Manufactures specialty chemicals and dyes intermediates in India.

Bodal Chemicals Limited 1 0.9x N/A

Mar-20Trient Technologies, Inc./ Tekra Corporation

Provides conversion and contract manufacturing services and manufactures plastic films and adhesives.

DelStar Technologies, Inc. 155 1.6x N/A

Mar-20 National Flavors, Inc. Engages in processing and manufacturing flavoring materials.

The Riverside Company N/A N/A N/A

Mar-20Kraton Polymers LLC(Cariflex Business)

The Business comprises isoprene rubber latex manufacturing assets in the United States. Daelim USA Inc. 530 N/A 13.6x

Mar-20 Fuji Seal Packaging (Thailand) Co., Ltd.

Manufactures packaging material products. Fuji Seal International, Inc. 40 N/A N/A

Mar-20 SKCKOLONPI, Inc. Manufactures polyimide films and varnishes in South Korea.

Glenwood Private Equity 585 5.7x 22.0x

Mar-20 Akzo Nobel Boya Sanayi Ve Ticaret Anonim Sirketi

Manufactures powder coatings. Akzo Nobel N.V. N/A N/A N/A

Mar-20 Suzhou GreenPower New Energy Materials Co., Ltd.

Engages in processing films and manufacturing new energy materials.

Yunnan Energy New Material Co., Ltd.

254 4.2x N/A

Mar-20 Abrasive Products & Equipment, LLC

Distributes surface preparation, safety, and environmental management products.

Marco Group International, Inc. N/A N/A N/A

Mar-20 Alpha Coating Technologies LLC Manufactures powder coatings. PPG Industries, Inc. N/A N/A N/A

Mar-20 Bayshore Industrial, LLC Produces specialty compounds, concentrates, and additives.

Ingenia Polymers Corp. N/A N/A N/A

Feb-20CNNC Hua Yuan Titanium Dioxide Co., Ltd

Engages in the production and marketing of titanium dioxide powder in China and internationally.

N/A 233 1.9x 9.3x

Feb-20New Earth Development Corporation

Manufactures nano superconductors and carbon materials from cannabidiol (CBD) and tetrahydrocannabinol (THC) cultivar.

Stevia Nutra Corp 26 N/A N/A

Feb-20DS Smith Plc(Plastics Division)

The Division comprises flexible and rigid plastic, and foam product assets in the United Kingdom.

Liqui-Box Corporation 591 N/A 9.9x

Feb-20 Shandong Focuschem Biotech Co., Ltd.

Develops and manufactures sodium hyaluronate.

Lushang Health Industry Development Co.,Ltd.

37 3.7x N/A

Feb-20 Global Plastics LP Distributes thermoplastic resins and commodity plastics.

Marco Polo International, Inc. N/A N/A N/A

Feb-20 Icynene-Lapolla Manufactures and distributes spray polyurethane foam insulation products.

Huntsman Corporation 350 1.5x N/A

Feb-20 Ungerer & Company, Inc.Engages in the production and processing of essential oils, oleoresins, and aroma chemicals.

Givaudan SA N/A N/A N/A



9

Precedent Transactions Analysis (Cont.)

1 Source(s): S&P Capital IQ, Pitchbook5 Adj. mean excludes high and low values.

Transaction ActivityRecently Closed Transaction - Chemicals1

Date Closed Target Target Description Acquiring Company Transaction

ValueLTM

EV/RevenueLTM

EV/EBITDA

Feb-20 Taekwang Industrial Co., Ltd.Engages in the synthetic fiber, textile, petrochemical, and advanced material businesses.

Norges Bank 1 N/A N/A

Feb-20 Rolfes Holdings Limited Manufactures and distributes chemical products.

Phatisa Fund Managers L.L.C. 44 0.4x 7.0x

Feb-20 Wilshire Technologies Inc.Provides synthetic and natural products for kilo-lab, pilot, and commercial development requirements.

Evonik Industries AG N/A N/A N/A

Feb-20 Mekong Petrochemical Joint Stock Company

Manufactures and supplies lubricants and greases.

SK Lubricants Co., Ltd. 42 N/A N/A

Feb-20Celaya, Emparanza y Galdos Internacional S.A.(Magnanese Dioxide Business)

The Business comprises a magnanese dioxide production factory and an electric power generation unit located in Spain.

Compañía Minera Autlán, S.A.B. de C.V. 29 N/A N/A

Feb-20 Innophos Holdings, Inc. Produces specialty ingredients. Iris Parent LLC 1,034 1.3x 8.6x

Feb-20 American Pacific Corporation Manufactures specialty chemicals, primarily oxidizers.

AE Industrial Partners, LP N/A N/A N/A

Feb-20 Robertet SA Produces perfumes, aromas, and natural products worldwide.

Givaudan SA N/A N/A N/A

Feb-20 INDUSTRIA CHIMICA REGGIANA - I.C.R. S.p.A

Manufactures composites and coatings. PPG Industries, Inc. N/A N/A N/A

Feb-20 Itibanyl Special Products LTDA Develops biocidal ingredients. LANXESS Aktiengesellschaft N/A N/A N/A

Feb-20SKC Co., Ltd.(Chemical Business)

The Business comprises propylene oxide (PO) and propylene glycol (PG) manufacturing assets in South Korea.

Petrochemical Industries Company K.S.C. 456 N/A N/A

Feb-20 6th Wave Innovations Corp. Develops nanotechnologies for selective isolation and detection of target substances.

Sixth Wave Innovations Inc. 12 N/A N/A

Feb-20 PeroxyChem LLC Manufactures hydrogen peroxides and remediation technologies.

Evonik Industries AG 640 N/A N/A

Feb-20 Ritrama S.p.A.Manufactures, sells, and distributes commodity and specialty self-adhesive materials.

Fedrigoni S.p.A. 283 0.6x N/A

Jan-20Solvay SA(Performance Polyamides Business)

The Business comprises engineering plastics operations in France. DOMO Chemicals GmbH 557 N/A N/A

Jan-20 Solvay SA(Polyamide Business)

The Business comprises nylon plastics manufacturing assets in Belgium.

BASF SE 1,441 N/A N/A

Jan-20 Borchers Americas Inc. Manufactures additives. Milliken & Company, Inc. N/A N/A N/A

Jan-20 Solana d.d. Tuzla Produces and sells salt and salt based products.

AS d.o.o.; AS HOLDING d.o.o. 4 N/A N/A

Jan-20 ZIFRONI Chemical Suppliers Ltd. Distributes chemicals. IMCD N.V. N/A N/A N/A

Jan-20 Key Polymer CorporationManufactures custom formulated and toll manufactured adhesives, coatings, and other chemical compounds.

DalFort Capital, LLC N/A N/A N/A

Jan-20 Tianjin Bohai Petrochemical Co., Ltd.

Owns and operates a propylene plant. Tianjin Global Magnetic Card Co., Ltd.

333 N/A N/A

Jan-20 Fiber Materials Inc. Develops and manufactures high temperature materials and composites.

Spirit AeroSystems Holdings, Inc. 120 N/A N/A

Jan-20 Chrome International South Africa (Pty) Limited

Produces sodium dichromate and chromic acid.

Brother Enterprises Holding Co.,Ltd.

89 N/A N/A

Jan-20Deltech Resin Company(Remainder of Select Portfolio of Alkyd Resins)

The Select Portfolio of Alkyd Resins comprise alkyd resin product assets in the United States.

Gabriel Performance Products, LLC N/A N/A N/A

Jan-20 Flame Control Coatings, LLC Manufactures and supplies specialty coatings. Seal for Life Industries, LLC N/A N/A N/A

Jan-20 Highland International, Inc. Produces specialized coating systems. Seal for Life Industries, LLC N/A N/A N/A

Jan-20 LifeLast Inc. Formulates and manufactures polyurethane protective linings and coatings.

Seal for Life Industries, LLC N/A N/A N/A

Jan-20 Polyplastic Group B.V. Engages in the production and distribution of acrylic sheets.

LCI Industries B.V. 95 1.6x N/A

Jan-20 Shandong Qingyang New Material Co., Ltd.

Produces anhydride epoxy curing agents. Puyang Huicheng Electronic Material Co., Ltd.

10 0.7x N/A

Jan-20Huntsman International LLC(Integrated Oxides and Derivatives Business)

The Business comprises oxides and derivatives assets in the United States. Indorama Ventures Holdings LP 2,006 N/A 5.7x

Mean $357 1.8x 9.8xAdj. Mean5 315 1.7x 9.0x

Median 138 1.4x 9.3x

Summary Statistics



Balmoral Advisors is an independent, specialtyinvestment bank dedicated to providing mergers &acquisitions, corporate finance, and financialrestructuring advisory services for clients worldwide.We work with business owners, corporations andfinancial investors involving emerging growthcompanies, mature businesses, corporatedivestitures, distressed and turnaround transactions.

We bring a powerful combination of deep experience,industry expertise, and broad market reach to everyclient engagement. Our senior professionals havedecades of experience and collectively have advisedon more than $35 billion of transactions. There is no“one size fits all”. We evaluate each client’s uniqueneeds and develop a customized approach based ondecades of experience.

Our practice is global, but the culture of our firmreflects our Midwestern roots in terms of values, workethic, and focus on developing long-termrelationships. Since inception, more than half of ourcompleted transactions were with repeat clients.

Acted as Financial Advisor to Particle Dynamics Acted as Financial Advisor to Cathay Industries Acted as Financial Advisor to Arsenal Capital Partners Acted as Acted as Financial Advisor to PlastiComp

Has been acquired byHas sold its U.S. High Purity Division to

An Affiliated Portfolio Company of

Has been refinanced by

About Balmoral Advisors

Recent Transactions: Chemicals

Mergers & Acquisitions♦Negotiated acquisitions♦Auction participation♦Distressed and cross-border transactions♦Retained search

Sales & Divestitures♦Divestitures and corporate carve-outs♦§363 bankruptcy sales

Debt & Equity Placement♦Growth and acquisition capital♦Leveraged buyouts♦Financial restructuring♦Late-stage venture capital♦Recapitalizations

Balmoral specializes in helping clients sell theirbusinesses, source and complete acquisitions, andraise or refinance capital. We work with businessowners, corporations and financial investors worldwideat every stage, including emerging growth, mature,distressed and turnarounds.

Balmoral’s Services

Balmoral’s Senior TeamChris Cerimele

Managing Partner+1 (312) 371-3527 (m)

+1 (312) 766-9890 x237 (o)[email protected]

Brooks CrankshawManaging Director

+1 (312) 399-3627 (m)+1 (312) 766-9890 x335 (o)

[email protected]

Primary Industries Served

Chemicals & Materials

Food & Beverage

Industrials PackagingBuilding Products

Michael PalumboAnalyst

+1 (574) 612-3251 (m)+1 (312) 766-9890 x725 (o)

[email protected]

Lillie RossAnalyst

+1 (630) 744-9833 (m)+1 (312) 766-9890 x767 (o)

[email protected]

Jonathan GoldsteinAssociate

+1 (847) 814-4110 (m)+1 (312) 766-9890 x465 (o)[email protected]

Karen CroyleVice President


Stan KossManaging Director

+1 (312) 953-3666 (m)+1 (312) 766-9098 x567 (o)

[email protected]

Bob DekkerManaging Director


Business Services

10


http://balmoraladvisors.com/services/mergers-acquisitions/

http://balmoraladvisors.com/services/mergers-acquisitions/

http://balmoraladvisors.com/services/capital-rising/

http://balmoraladvisors.com/about-us/chris-cerimele/

mailto:[email protected]

http://balmoraladvisors.com/brooks-crankshaw/





http://balmoraladvisors.com/stephen-wrobel/

http://balmoraladvisors.com/stephen-wrobel/

http://balmoraladvisors.com/stan-koss/

http://balmoraladvisors.com/stan-koss/

http://balmoraladvisors.com/bob-dekker/

http://balmoraladvisors.com/bob-dekker/

http://balmoraladvisors.com/industries/building-products/

http://balmoraladvisors.com/industries/chemical-materials/

http://balmoraladvisors.com/industries/food-beverage/

http://balmoraladvisors.com/industries/industrial-manufacturing/

http://balmoraladvisors.com/industries/plastics-packaging/


Acted as Financial Advisor to Advanced Diamond Technologies Inc. Acted as Financial Advisor to Arsenal Capital Partners

Acted as Financial Advisor to Cathay Industries Acted as Financial Advisor to East West Copolymer Acted as Financial Advisor to East West Copolymer Acted as Financial Advisor to East West Copolymer

Acted as Financial Advisor to Melior InnovationsActed as Financial Advisor to L Street CollaborativeActed as Financial Advisor to Haverhill ChemicalsActed as Financial Advisor to East West Copolymer

Acted as Financial Advisor to Axiall Corporation Acted as Financial Advisor to Axiall Corporation

Has sold its U.S. High Purity Division to

Has been acquired by

Acted as Financial Advisor to NGC Acted as Financial Advisor to Oldcastle Infrastructure Acted as Financial Advisor to P2 Science Acted as Financial Advisor to Particle Dynamics

Acted as Financial Advisor to PlastiComp Acted as Financial Advisor to SemiTorr Group, Inc.

Has sold its Industrial Division to


Stetco Hydraulic CraneA division of



A subsidiary of


An affiliated portfolio company of

Acted as Financial Advisor to Transom Capital Group

Has received financing in relation to their acquisition of

An Affiliated Portfolio Company of

Has been refinanced by

Has Divested its Specialty Phosgene Derivatives Business to

Has Sold its Manufacturing Facilities in a Chapter 11 §363 Asset Sale to

$16,000,000Senior Secured Credit Facility Provided by

Has Received a Growth Capital Investment from

Has Received a Second Growth Capital Investment from

Has Sold its Manufacturing Facilities in a Chapter 11 §363 Asset Sale to

and

and

Has Received an Investment from

Raised a Series B Financing Round Co-led by

Completed Transactions since 2015

11


industry insights: q1 2020...

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