Chemistry

Mergers and Acquisitions in the Chemical Sector

The chemical industry influences nearly every aspect of our lives and generates an annual turnover of over 3 billion Euros (about 5% of global GDP). The industry has more than doubled in size during the past decade. Although growth has occurred in all regions, the most significant increase has been observed in China and the rest of Asia.
The financial crisis of 2008-2009 led to a significant contraction in sales in Europe and North America, with traditional sectors such as construction and automotive experiencing a steep decline. Mergers and acquisitions activity slowed as companies focused on cost control and cash conservation.

Transaction volume bounced back as profitability improved and companies resumed executing their long-term strategic plans.

Key considerations in the Chemical Industry market from a M&A perspective include:

• Growth opportunities in Asia, Latin America, and other emerging regions.
• Consolidation of supply chains, particularly in Europe.
• Development of petrochemical-based bio-feed alternatives to stock.
• Availability of inexpensive shale resources in North America.
• Renewed interest from financial sponsors.
• Communication and image crisis, under pressure from environmental activists.
• Creation of innovative technologies and higher added value.

The annual pace of M&A transactions in terms of volume typically ranges from €15-30 billion (about 0.5-1% of industry sales).

We estimate that up to 500 transaction opportunities arise each year, but generally only 50 to 100 opportunities are valued at more than 20 million Euros.

We have successfully completed transactions across the sector, representing both buyers and sellers.

Actoria’s experts and consultants are experienced and dedicated specialists.

We can identify and engage suitable buyers through a direct approach.

Our international professionals have executed numerous research and sales mandates within the chemical industry. Our global team’s foundation comprises a large group of experts from the chemical industry, as well as country partners in Europe and the United States.

Confidentiality is Essential

As an independent firm, we can approach potential buyers without prematurely disclosing our client’s identity. We are committed to achieving our clients’ growth objectives successfully and avoid operating in ways that might generate conflicts of interest. We do not work for direct competitors in the same industries, and we represent only one party in each transaction. Our structured and phased approaches are key to our historically high success rate for divestiture assignments.