BASF and Clayton, Dubilier & Rice concluded an agreement to sell Solenis to the US-based Platinum Equity for $5.25 billion- July 2021

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  • BASF and Clayton Dubilier and Rice concluded an agreement to sell Solenis

Clayton, Dubilier & Rice ("CD&R"), and BASF signed an agreement with Platinum Equity for the sale of Solenis, a leading global producer of specialty chemicals used in water-intensive industries. The transaction implies an enterprise value for Solenis of $5.25 billion, which includes net debt of around $2.5 billion.

Solenis generated sales of $2.8 billion in the fiscal year that ended on 30 September. The company has more than 41 manufacturing facilities.

With over 5,200 employees, Solenis supplies innovative specialty chemicals and services for process, functional, and water treatment applications to consumer markets (consumer and food packaging, graphic paper, and tissue and towel markets) and industrial markets (core water treatment and wastewater markets).

The current equity structure of the Solenis company includes BASF (49%) using the equity method. The remaining 51% of shares in the company are held by Clayton, Dubilier & Rice (CD&R), and the Solenis management. Following the completion of the transaction, which is expected before the end of 2021, BASF and Clayton, Dubilier & Rice will fully exit their investment in Solenis.

Following the transaction, Solenis is expected to merge with Sigura Water, one of the Platinum Equity portfolio companies. According to Platinum Equity, the combined company is expected to generate approximately $3.5 billion in revenue. The combined entity will serve customers across diverse industry verticals including consumer, industrial, and pool water treatment segments.