Sale of Chemlogics Group
The transaction was initiated and negotiated though a long-term consulting agreement between Chemlogics and CDI Global. CDI developed the documentation, target list, contact and negotiated with the targets and assisted in the Due Diligence and closing documentation.
The Chemlogics Group realized sales of roughly $500 million. The company supplies chemicals to the rapidly growing oil and gas stimulation and cementing segments. These chemicals are required for successful hydraulic fracking of shale gas that is helping to reduce U.S. reliance on foreign fuel and address climate change concerns.
Chemlogic’s assets are located in the U.S., including three manufacturing facilities, eight formulation centers, and six research and technical facilities. One Equity Partners, the private equity arm of JP Morgan Chase, bought a 37% stake in Chemlogics in December 2010 in a process also managed by CDI Global.
Solvay SA, a $12.0 billion/year Belgian-based specialty chemical producer, acquired U.S.- based Chemlogics Group – for more than $1.3 billion at a 10.7 times EBITDA multiple.
“CDI Global worked seamlessly and professionally as part of the Chemlogics Team over the past 5 years to assist us in our significant growth and ultimate divestiture to Solvay,” said Bill Frost, the CEO and majority owner of Chemlogics.