Macdermid Parent Buys Enthone Group
Cash and stock transaction for approximately $2.1 billion; including net debt, the total transaction value is approximately $2.3 billion.
Platform Specialty Products Corporation, the parent of Macdermid, has agreed to acquire Alent plc, the parent company of Enthone, in a cash and stock transaction for approximately $2.1 billion. Including net debt, the total transaction value is approximately $2.3 billion.
Alent's business comprises two business segments: Enthone, its Surface Chemistries business - a global supplier of electroplating chemistry to the electronics, automotive and industrial industries; and Alpha, its Assembly Materials business - a global supplier of interconnect materials, primarily into electronics applications.
"The proposed acquisition of Alent marks a further step in the Platform strategy of building a portfolio of best-in-class 'Asset-Lite, High-Touch' businesses in the specialty chemicals industry," said Martin E. Franklin, Platform's Founder and Chairman. "This business and acquisition fits well within our stated objectives, and we are compelled by the value creation the combination may generate. The creation of Platform was the catalyst that created an environment where the Alent transaction could take place. That's what Platform is all about. Alent is a terrific fit and rebalances the portfolio as we continue to build the company."
"Alent is a strong complement to Platform's founding asset MacDermid, and I am excited to see it become a part of the Platform family," said Daniel H. Leever, Platform's Chief Executive Officer. "We have a long history with Alent and its predecessor company, and these are assets we know well. We believe the synergy potential is significant as is our combined ability to deliver better technology and service to our customers. Alent will far enhance the breadth, depth and overall footprint of Platform's Performance Applications segment. Alent's Enthone division represents a perfect partner as we continue to grow and build MacDermid whilst Alent's Alpha division adds several new high return positions to our portfolio. This latest acquisition further underlines the Platform 'Asset-Lite, High-Touch' thesis and the strength of our long-term growth story."
Commenting on the announcement, Andrew Heath, Chief Executive of Alent, said:
"Since the successful demerger of Alent at the end of 2012, our market leading businesses have outperformed their end-markets and delivered increasing returns. Major steps have been taken to improve efficiency together with investments in facilities and R&D to support future growth. In addition, our Investment for Growth strategy announced earlier this year positions Alent to deliver long-term growth and sustainable margin improvement. The significant premium being offered by Platform recognizes the progress Alent has made, the opportunities in front of us and the overall quality of the business, whilst also presenting a clear opportunity for our shareholders to realize the full value of their investment earlier.
"I said when I joined Alent that it is a strong business, at the heart of which is a tremendous technical capability that has been built up by the knowledge, passion and enthusiasm of our people around the world. The combination with Platform, drawing on the best of both that Alent and Platform have to offer, is a compelling proposition which I believe will be better able to serve customers and provide even greater opportunities for our employees. Our Board is unanimous in its recommendation of the proposed Transaction."
The transaction will be implemented by way of a court-sanctioned scheme of arrangement under the U.K. Companies Act 2006. Both companies' boards of directors unanimously support the transaction, which is expected to close in late 2015 or early 2016 after the satisfaction of the applicable closing conditions, including Alent shareholder approval and regulatory approvals in certain jurisdictions. Following closing of the transaction, Platform will remain a New York Stock Exchange listed company domiciled in the United States.
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