For a more in-depth look download our Chemicals M&A Brochure.
M&A in the Chemicals Sector
The global specialty chemical market is anticipated to grow at a compound annual growth rate of 5.3% over the forecast period of 2019-2027. The major drivers for the growth of this market are the increasing popularity of eco-friendly products, economic growth in the Asia-Pacific regions, growing focus on sustainability, and surges in research and development expenditures of specialty chemicals.
The US and EU M&A activity in 2019 began cautiously but is expected to maintain its momentum. Two factors emerged toward the end of 2018 that could impact 2019 deal making. The financing markets slowing during the fourth quarter and concerns that ongoing uncertainty around Brexit might decelerate European deal activity. Latin America, especially Brazil, maintains a positive outlook for 2019 due to a more “free market” approach after the election of Bolsonaro and positive reaction from the financial markets.
In Asia, foreign buyers will find the Chinese chemical market challenging terrain in 2019 for two main reasons. First, state owned enterprises dominate many sectors and are either not for sale or will only offer minority shares to foreign parties. The second is high asking prices for privately owned businesses. However, reforms and government initiatives in India are expected to help the chemicals industry see increased M&A activity in 2019 and beyond. Growth will be led by base chemicals, agro-chemicals, and construction chemicals in India.
CDI Global Expertise
CDI’s knowledge and experience in the Chemicals sector includes coatings, adhesives and sealants, polymers and resins, pharmaceuticals and fine chemicals, plastics, surfactants, as well many other areas.
Our industry specialists have extensive experience and expertise in the technology, manufacturing and distribution segments. Recent assignments have solidified a thorough understanding of these specialty areas in a broad variety of chemical products.
CDI Global maintains ongoing relationships and attends industry leading conferences with both producers and process equipment manufacturers, where industry trends are closely monitored. Out team expertise makes CDI Global a leading choice for M&A transactions in the Chemicals sector.
CDI Global Chemicals Sector Leaders
CDI Global Chemicals Team Members
- Jeff Schmidt (USA)
- Hugh Fowler (USA)
- Mischa Perrenoud (Switzerland)
- Abhijeet Karwa (India)
- Daniel Senger (China)