Element Solutions Inc, a global and diversified speciality chemicals company and the parent company of MacDermid Enthone Industrial Solutions, has announced it has made a binding offer* to acquire Coventya Holding SAS.
Under the terms of the offer, Element Solutions will pay approximately €420 million in cash, including the assumption or repayment of debt, subject to certain adjustments. The transaction is expected to close in late Q3 or Q4 2021, subject to receipt of certain regulatory approvals, completion of required employee consultation procedures and other customary closing conditions. Upon the closing of the transaction, Coventya will join MacDermid Enthone Industrial Solutions and will be reported within the company’s Industrial & Specialty segment.
Coventya is a global specialist in developing metal finishing chemical technologies with an array of solutions that provide decorative and functional coatings for industrial end markets in over 60 countries. The business has manufacturing facilities in Asia, Europe, and the Americas, and its products serve customers globally across automotive, fashion, construction, electronic, consumer goods, energy, and aerospace/military end markets.
Coventya is expected to generate annual sales of approximately €160 million and adjusted EBITDA of greater than €30 million for its fiscal year 2021 ending in September.
President and Chief Executive Officer Benjamin Gliklich comments: “We are very pleased to announce our proposed transaction with Coventya. This is an excellent business that aligns seamlessly with our acquisition criteria and a company that we have admired for decades. Coventya has a long history of providing innovation and high-quality solutions in attractive niche markets like our own.”
He continues: “We believe that Coventya’s deep customer relationships, solutions-orientation, and outstanding team, will improve our company and the breadth and quality of solutions we provide to our key markets. With this acquisition, we expect our MacDermid Enthone Industrial Solutions business to benefit from enhanced scale and strong complementary product offerings. We enjoy nothing more than investing in our robust businesses and leaders in equally great businesses and teams. The opportunity with Coventya is a great case study for this, and we are looking forward to welcoming the Coventya team to the Element Solutions family.”
Coventya CEO Erik Weyls said: “This transaction is a great milestone for our company. We expect Element Solutions to provide Coventya and its people with resources and capabilities that will accelerate our growth. This has long been a logical combination, which we believe will provide customers with a broad suite of enhanced solutions that will be differentiated in our markets. I am incredibly proud of the team that has enabled Coventya’s success to date and thankful for their effort to build such an outstanding company. The future is bright for our business and its people, and we are all looking forward to becoming a part of the dynamic company that the team at Element Solutions is building.”
*Under French law, Coventya’s shareholders may not accept the Company’s offer or enter into the binding purchase agreement until completion of consultation procedures with certain workers’ representative bodies.
Will joined Fastener + Fixing Magazine in 2007 and over the last 15 years has experienced every facet of the fastener sector - interviewing key figures within the industry and visiting leading companies and exhibitions around the globe.
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