May 11 2015, David R Brown
IMCD to acquire US specialty chemicals distributor MF Cachat
IMCD has announced that it is to acquire 80% of The M.F. Cachat Company, including 100% of MJS Sales, Inc. MF Cachat fits well with the IMCD business model and strategy and provides the Group with a significant platform for further growth in the United States which remains a hugely important market for specialty chemicals.
A position in the US will give us the opportunity not only to grow in this huge market, but also to expand our relations with existing suppliers and customers
Piet van der Slikke
CEO of IMCD
Initially IMCD will acquire 80% of the total share capital from the management of MF Cachat who will continue to lead the company. The remaining 20%, which is also owned by management, will be acquired by 2017.
MF Cachat is a leading specialty chemicals distributor in the US with a focus on coatings, construction, plastics, advanced materials and food. With its head office near Cleveland, Ohio, MF Cachat is active in the Midwest, Central, Eastern and Southern regions of the US and represents leading global chemical suppliers in more than 30 states. In 2014, MF Cachat generated revenue of USD 300 million (including USD 3 million of MJS Sales) and has approximately 90 employees.
The acquisition supports the strategy of IMCD to become a leading global specialty chemicals distributor. MF Cachat and IMCD will explore opportunities for synergies by offering both companies' suppliers the possibilities to benefit from each other's network. In addition it will offer further growth opportunities in the North American market, both organically and through acquisitions.
Piet van der Slikke, CEO of IMCD, commented: “This is a very important next step in the strategy of IMCD to become a leading specialty chemicals distributor in key markets. A position in the US will give us the opportunity not only to grow in this huge market, but also to expand our relations with existing suppliers and customers.”
John Mastrantoni, president and CEO of MF Cachat, adds:“MF Cachat and IMCD have similar strategies and cultures and we look forward to working together to expand our business in the US further.”
The acquisition will be paid from available cash, existing facilities and an additional incremental term loan facility of EUR 30 million pursuant to the terms of its current facilities agreement and newly issued shares with a value of approximately EUR 85 million. Details of the financing were made available in a separate press release also issued today. The closing of the transaction is subject to customary regulatory review and is expected in June/July 2015.
About IMCD
Listed at Euronext Amsterdam (IMCD.AS), IMCD realised revenues of EUR 1,358 million in 2014 and is a market-leader in the sales, marketing and distribution of specialty chemicals and food
ingredients across Europe, Africa, Asia-Pacific and in Brazil. The Group employs a dedicated team of more than 1,500 technical and commercial experts work in close partnership with around 28,000 customers and suppliers in more than 30 countries and 5 continents worldwide.
Source(s): IMCD Press Release
Further Information
Visit: http://www.imcdgroup.com