Element Solutions To Buy French Peer Coventya For 420 Mln Euros – Quick Facts

Specialty chemicals company Element Solutions Inc (ESI) announced Friday that it has made a binding offer to acquire French peer Coventya Holding SAS. Under the terms of the offer, Element Solutions will pay approximately 420 million euros in cash, including the assumption or repayment of debt, subject to certain adjustments.

The transaction is expected to close in late in the third or fourth quarter of 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.

Coventya is expected to generate annual sales of approximately 160 million euros and adjusted EBITDA of greater than 30 million euro for its fiscal year 2021 ending in September.

With this acquisition, Element Solutions expect their MacDermid Enthone Industrial Solutions business to benefit from enhanced scale and strong complementary product offerings.

On a pro forma basis, Element Solutions expect the acquisition to add approximately $0.07 to its annualized adjusted earnings 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. It also expects at least 13 million euros in annual synergies to be realized over the two years following the close of the transaction.

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.

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