M&A in the Chemicals sector:
The Chemical industry touches almost every aspect of our lives and has annual sales in excess of 3 trillion Euros (about 5% of global GDP). The industry has more than doubled in size over the last decade and, while all regions have recorded growth, the uplift has been strongest in China and the rest of Asia.
The financial crisis in 2008-2009 led to a sharp sales contraction in Europe and North America as major chemicals markets (eg. construction and automotive) nose-dived. M&A activity slowed as companies switched their focus to cost control and cash conservation. Deal volumes have rebounded as profitability has recovered and companies have resumed the pursuit of their longer-term strategic plans.
Major issues driving Chemical industry M&A include:
* Growth opportunities in Asia, Latin America and other emerging regions.
* Consolidation of commodity supply chains, particularly in Europe.
* Development of bio-based alternatives to petrochemical feed-stocks.
* Availability of cheap shale feed stocks in North America.
* Resurgent interest from financial sponsors.
* Corporate break-ups, including some under pressure from activist investors.
* Creation of new technologies and higher added value.
Annual M&A transaction volumes are typically in the range 15-30 billion Euros (about 0.5-1% of industry sales). We estimate that there are up to 500 Chemical deals each year, although there are usually only 50-100 of > 20 million Euros transaction value. We have completed deals right across the valuation spectrum, on both the buy- and the sell-side.
CDI Global professionals are experienced and dedicated specialists:
We can locate and interview appropriate candidates on a face-to-face basis. Our Global Professionals have completed numerous search mandates and sell mandates in the Chemicals sector. Our base from which to compose our global team consists of a large group of Chemical industry experts, as well as country partners in Europe and the USA.
Confidentiality is vital:
As an independent firm, we are free to approach potential candidates without prematurely revealing our client’s identity. We are committed to the successful achievement of our clients’ growth objectives and will not operate in a way that creates the potential for conflict of interests. We do not work for direct competitors in the same business segments and we serve only one party to a transaction. Our structured and phased approaches are key to our historically high success rate for search assignments.