Platinum Equity To Acquire Water Treatment Company Solenis For $5.25 Billion

LOS ANGELES, July 6, 2021 /PRNewswire/ -- 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 and Sigura are highly complementary businesses and a fantastic fit with very little product or customer overlap," said Todd Golditch, Managing Director at Platinum Equity. "They both are leaders in providing mission-critical products and solutions to water-intensive industries and serve attractive end markets with strong tailwinds. Sigura's high-performance pool and spa treatment business and industrial segment will slot perfectly into the Solenis portfolio, and both will benefit from increased scale and end-market diversification. Together, the combined Solenis company will also have a world-class management team capable of driving market leadership and significant growth in the near- and long-term. We will also continue seeking new opportunities to grow the combined company through additional strategic M&A."

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."

Sigura CEO Robert Baird will lead a new Pool Solutions division at Solenis once the merger is completed.

"We are very excited about this opportunity with Solenis. The combination will help accelerate our growth and provide us access to additional resources and expanded market opportunities," said Mr. Baird. "Both of our companies share a common mission to deliver superior water quality solutions that improve the environment and enhance the security, health and safety of the communities we serve. I look forward to joining the Solenis leadership team and working with John and team to strengthen our businesses together."

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.

The Valence Group of Piper Sandler is serving as exclusive financial advisor to Platinum Equity on the acquisition of Solenis. Gibson Dunn & Crutcher LLP is providing legal counsel and Willkie Farr & Gallagher LLP is providing debt financing counsel to Platinum Equity. BofA Securities and Goldman Sachs are leading the debt financing for the acquisition.

About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with more than $25 billion of assets under management and a portfolio of approximately 40 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners V, a $10 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O^® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 25 years Platinum Equity has completed more than 300 acquisitions.

About Solenis
Solenis is a leading global producer of specialty chemicals focused on delivering sustainable solutions for water-intensive industries, including the pulp, packaging paper and board, tissue and towel, oil and gas, petroleum refining, chemical processing, mining, biorefining, power and municipal markets. The company's product portfolio includes a broad array of water treatment chemistries, process aids, functional additives as well as state-of-the-art monitoring and control systems. These technologies are used by customers to improve operational efficiencies, enhance product quality, protect plant assets and minimize environmental impact. Headquartered in Wilmington, Delaware, the company has 41 manufacturing facilities strategically located around the globe and employs a team of approximately 5,000 professionals in 120 countries across five continents. Solenis is a 2021 US Best Managed Company.

About Sigura
Headquartered in Alpharetta, GA, Sigura is a leading provider of innovative water treatment solutions. The company maintains six production facilities throughout North America, South America, Europe and Africa, with 1,000 employees globally, located in all major regions. It features top consumer brands in the residential pool care market and strong positions in high-growth Industrial & Municipal water markets. Key brands include HTH®, Pulsar®, poolife®, GLB®, Applied Biochemists®, Leisure Time®, Baquacil®, BaquaSpa®, Constant Chlor®, Hypocal®, and more.

Media Contacts:
Dan Whelan
Platinum Equity
(310) 282-9202
[email protected]

Catherine Abernathy
Solenis
(904) 910-1071
[email protected]

Jordan Sutherlin
Sigura
[email protected]         

SOURCE Platinum Equity