Equity firm acquires specialty chemicals company

PLATINUM Equity, an investment firm, is to acquire specialty chemicals company Solenis for US$5.25bn.

Solenis is a specialty chemicals supplier focussed on providing sustainable options for water-intensive industries. The company serves two primary segments, consumer – which includes consumer and food packaging, graphic paper, and tissue and towel markets – and industrial, which comprises core water treatment and wastewater markets.

Platinum intends to merge Solenis with Sigura Water, a water treatment company which it acquired in 2019 for US$6.5bn. Sigura makes and sells water-care products and services for commercial and residential pool and spa applications, as well as industrial markets.

The combined company will generate about US$3.5bn in revenue.

Platinum is acquiring Solenis from chemical company BASF and investment firm Clayton, Dubilier & Rice. The acquisition and merger is expected to be complete before the end of 2021.

Todd Goldrich, Managing Director at Platinum Equity, said: “Solenis and Sigura are highly complementary businesses and a fantastic fit with very little product or customer overlap.”

“Platinum Equity will continue to seek new opportunities to grow the combined company further, through additional mergers and acquisitions.”