California-based private equity investor Platinum Equity announced today an agreement to acquire Solenis, a leading provider of specialty chemicals for water-intensive industries, from Clayton, Dubilier & Rice and BASF. The deal assigns an enterprise value of $5.25 billion to Solenis, including net debt of approximately $2.5 billion.
Solenis is 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 products are used by customers in these sectors to improve operational efficiencies, enhance product quality, protect plant assets and minimize environmental impact.
Jacob Kotzubei, Partner at Platinum Equity, said:
“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. 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.”
According to Platinum Equity, following the transaction, Solenis will be merged with its portfolio company Sigura, with the goal of creating a diversified leader in sustainable solutions. Sigura is a leading provider of innovative water treatment solutions, focused on residential and commercial pool and spa applications as well as industrial markets.
Todd Golditch, Managing Director at Platinum Equity, said:
“Solenis and Sigura are highly complementary businesses and a fantastic fit with very little product or customer overlap. They both are leaders in providing mission-critical products and solutions to water-intensive industries and serve attractive end markets with strong tailwinds.”