Platinum Equity to Acquire Water Treatment Company Solenis for $5.25 Billion

Solenis currently serves two primary segments: Consumer Solutions (consumer and food packaging, graphic paper, and tissue and towel markets) and Industrial Solutions (core water treatment and wastewater markets).

July 6, 2021 - Platinum Equity announced today that it has signed a definitive agreement to acquire Solenis, a leading global producer of specialty chemicals used in water-intensive industries, from Clayton, Dubilier & Rice ("CD&R") and BASF in a transaction that implies an enterprise value for Solenis of $5.25 billion.

As part of the transaction, Solenis is expected to merge with Sigura Water, an existing Platinum Equity portfolio company the firm acquired in 2019, for a total combined transaction value of approximately $6.5 billion. The combined company is expected to generate approximately $3.5 billion of revenue and serve a diverse range of customers around the world in consumer, industrial and pool water treatment markets.

Founded in 1907 and headquartered in Wilmington, Delaware, Solenis is a global leader in supplying innovative specialty chemicals and services for process, functional and water treatment applications to consumer and industrial markets. The company's global footprint spans across 120 countries and five continents, and comprises over 5,200 employees and 41 manufacturing facilities.

"Global demand for solutions that save water, use less energy, eliminate waste, and convert everyday products to more sustainable materials is only continuing to grow," said Jacob Kotzubei, Partner at Platinum Equity. "As a leader in sustainability, Solenis has been helping its customers tackle these complex challenges for more than 100 years. It is an exceptionally well-run organization with an outstanding management team and a service-oriented culture. We believe in the company's mission and we are excited to invest in its continued growth and expansion."

Solenis currently serves two primary segments: Consumer Solutions (consumer and food packaging, graphic paper, and tissue and towel markets) and Industrial Solutions (core water treatment and wastewater markets). Sigura's business is in the production and sale of water care solutions and value-added services for residential and commercial pool and spa applications as well as industrial markets.

Solenis CEO John Panichella will continue to lead the combined company following the transition and integration.

"Today is an important milestone for Solenis. We thank the CD&R team for its support, which has positioned us well for this exciting next phase of growth with our new investment partners at Platinum," said Mr. Panichella. "Combining with Sigura will help bolster our scale, diversify our end markets and create attractive operational improvement opportunities to increase profitability. Sigura is an industry pioneer in the pool space with a well-deserved reputation for innovation, a portfolio of industry-leading brands in the pool space and a growing industrial business. We are thrilled to partner with Platinum and excited to welcome Sigura to the Solenis family."

The acquisition of Solenis and merger with Sigura are expected to be completed before the end 2021, subject to regulatory approval and customary closing conditions.

SOURCE: Platinum Equity