-
- News
- Books
Featured Books
- pcb007 Magazine
Latest Issues
Current IssueThe Growing Industry
In this issue of PCB007 Magazine, we talk with leading economic experts, advocacy specialists in Washington, D.C., and PCB company leadership to get a well-rounded picture of what’s happening in the industry today. Don’t miss it.
The Sustainability Issue
Sustainability is one of the most widely used terms in business today, especially for electronics and manufacturing but what does it mean to you? We explore the environmental, business, and economic impacts.
The Fabricator’s Guide to IPC APEX EXPO
This issue previews many of the important events taking place at this year's show and highlights some changes and opportunities. So, buckle up. We are counting down to IPC APEX EXPO 2024.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - pcb007 Magazine
Element Solutions Inc Announces Planned Acquisition of Coventya
June 11, 2021 | Element Solutions Inc.Estimated reading time: 3 minutes
Element Solutions Inc, a global and diversified specialty chemicals company, announced that it has made a binding offer* to acquire Coventya Holding SAS (“Coventya”), a global provider of specialty chemicals for the surface finishing industry. 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. On a pro forma basis after giving effect to expected annualized synergies, the proposed purchase price represents less than 10x Coventya’s projected fiscal year 2021 adjusted EBITDA.
President and Chief Executive Officer Benjamin Gliklich said, “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. 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 behind 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.”
Gliklich continued, “This acquisition should translate to positive outcomes for both companies and their customers and shareholders. On a pro forma basis, we expect the acquisition to add approximately $0.07 to our annualized adjusted EPS before synergies, representing accretion of approximately 5% based on our previously announced adjusted EPS guidance of $1.30 or greater for the full year 2021. The synergies from this transaction should be significant. We expect at least €13 million in annual synergies to be realized over the two years following the close of the transaction. In our markets, opportunities this size are rare, and we are thrilled to have found one consistent with our acquisition strategy of investing in markets we know and growing businesses we believe are better under our ownership. Our philosophy of balancing operational excellence with prudent capital allocation is working. Our execution and prudent balance sheet management since the inception of Element Solutions allows us to fund this transaction without additional equity while continuing our goal of maintaining a net leverage ratio at or below 3.0x at year end 2021.”
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.”
Suggested Items
ZESTRON Welcomes Whitlock Associates as New Addition to their Existing Rep Team in Florida
04/19/2024 | ZESTRONZESTRON, the leading global provider of high-precision cleaning products, services, and training solutions in the electronics manufacturing and semiconductor industries, is thrilled to announce the addition of Whitlock Associates to its esteemed network of sales representatives.
ViTrox Pioneering the Future of Smart Manufacturing at NEPCON China 2024
04/18/2024 | ViTroxViTrox, which aims to be the World’s Most Trusted Technology Company, is pleased to announce its participation in the NEPCON China 2024 at Booth #1H27 at Shanghai World Expo Exhibition & Convention Center from 24-26 April 2024.
ViTrox Technologies Elevates Service & Support Across US & Canada with Jeremy Woodworth's Appointment
04/18/2024 | ViTrox TechnologiesViTrox, which aims to be the World’s Most Trusted Technology Company, is pleased to announce the expansion of its US-based support team with the appointment of Jeremy Woodworth as Technical Support Senior Engineer based in the United States, effective March 15, 2024.
Micron’s Full Suite of Automotive-Grade Solutions Qualified for Qualcomm Automotive Platforms to Power AI in Vehicles
04/17/2024 | MicronMicron Technology, Inc. announced that it has qualified a full suite of its automotive-grade memory and storage solutions for Qualcomm Technologies Inc.’s Snapdragon® Digital Chassis™, a comprehensive set of cloud-connected platforms designed to power data-rich, intelligent automotive services.
Real Time with... IPC APEX EXPO 2024: Exploring Silicone Solutions with R&D Director of CHT
04/17/2024 | Real Time with...IPC APEX EXPOIn this interview, Gerry Ellis, the R&D director for CHT, discusses the product range offered by his company. He explains the challenges in creating base formulations, the drive to make products more user-friendly, and the various application techniques involved. Ellis also highlights the key market segments and the significance of providing efficient solutions to customers.