Natrium Capital Limited is pleased to announce it has advised Elementis on its recently announced acquisition of One Rock’s SummitReheis personal care business, for an enterprise value of about US$360 million.
Elementis plc (“Elementis” or the “Group”) today announces that it has entered into an agreement to acquire SRLH Holdings, Inc. (“SummitReheis”) from an affiliate of One Rock Capital Partners, LLC (“One Rock”) for an enterprise value of US$360 million, (the “Acquisition”). SummitReheis will become part of an enlarged personal care business within Elementis. For the year ended 31 December 2016, SummitReheis is expected to report revenue of US$134 million and underlying EBITDA of approximately US$28 million. The acquisition enterprise value is equivalent to approximately 11.8x SummitReheis expected underlying EBITDA for 2016 (including run rate cost synergies).
SummitReheis is a high quality, high margin specialty chemicals platform that produces a range of critical active ingredients and materials tailored for use in personal care, pharmaceutical and dental products. SummitReheis’ anti-perspirant actives business (more than 60 per cent. of its sales) is the global leader in the manufacture and sale of active ingredients for anti-perspirants and has long standing relationships with key consumer product companies across the Americas, Europe and Asia.
Transaction highlights:
Paul Waterman, CEO of Elementis plc, said: “At our recent Capital Markets Day presentation, we highlighted the growth prospects in personal care as a key opportunity for Elementis, driven by long term positive demographic trends and an increasingly sophisticated consumer. Our leading position with proprietary hectorite and Rheoluxe® rheology modifiers will be augmented by SummitReheis’ complementary position in specialty additives for anti-perspirants, pharmaceuticals and dental products. The Group is well positioned to capitalise on this acquisition through the enhanced geographic footprint and strong customer relationships that it brings. Together with our existing business, the acquisition of SummitReheis is transformative for our personal care business, creating a substantial, high return platform that will help accelerate our Reignite Growth strategy.”
Elementis was advised by Gleacher Shacklock as lead advisor and by Natrium Capital.
Elementis is a UK-listed global specialty chemicals company with operations worldwide that serve customers in North and South America, Europe and Asia Pacific in a wide range of markets and sectors. The Group comprises three businesses: Specialty Products, Chromium and Surfactants. Both Specialty Products and Chromium hold leading market positions in their chosen sectors. Elementis employs over 1,300 people at more than 30 locations worldwide. Further information is available at www.elementisplc.com.
One Rock Capital Partners (“One Rock”) makes controlling investments in companies with potential for growth and operational improvement using a rigorous approach that utilises highly experienced Operating Partners to identify, acquire and enhance businesses in select industries. The involvement of these Operating Partners affords One Rock the ability to conduct due diligence and consummate acquisitions and investments in all types of situations, regardless of complexity. Further information is available at www.onerockcapital.com.
Natrium Capital is a corporate finance boutique specialising in the chemicals and adhesives, materials, paints and coatings, biotechnology and clean technology industries. Natrium Capital offers high level strategic and M&A (mergers and acquisitions) execution advice and has extensive experience in investment banking and corporate finance. Natrium Capital is currently working with a number of clients worldwide. Natrium Capital was set up by Alasdair Nisbet in 2012. Further information is available at www.natriumcapital.com.
