VILLENEUVE LA GARENNE, FRANCE – Element Solutions has made a binding offer to acquire Coventya Holding in an all-cash deal of €420 million (US$509 million).

The sale is expected to close in the third or fourth quarter of 2021, subject to certain approvals.

Coventya develops, manufactures and distributes specialty chemicals for surface finishing, including electronics.

After the acquisition, Coventya will be added to MacDermid Enthone, a subsidiary of Element Solutions, and will be reported under the company’s industrial and specialty segment.

Coventya is expected to generate annual sales of €160 million and adjusted EBITDA of over €30 million for fiscal year 2021.

“This acquisition should translate to positive outcomes for both companies, their customers and shareholders,” said Element Solutions’ CEO Benjamin Gliklich. “We expect the acquisition to add approximately $0.07 to our annualized adjusted EPS before synergies, representing accretion of approximately 5% based on our previously announced adjusted EPS guidance of $1.30 for the full year 2021. Following the close of the transaction, we expect at least €13 million in annual synergies to be realized over the two years. In our markets, opportunities this size are rare, and we are thrilled to have found one consistent with our acquisition strategy.”

Ed.: €1 = US$1.21

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