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Industrials

Chemical Romance: Tariffs, Carve-Outs and a New Wave of Specialty Chemicals M&A

Desire for domestic production drives deals in specialty chemicals, as strategics optimize their portfolios.
February 16, 2026
Gregory DL Morris

After a slow first half of the year, dealmaking in the specialty chemicals sector has been accelerating, driven in large part by tariff and supply-chain upheavals. And while there has been consolidation in the sector over recent years, it remains highly fragmented. Buyers and sellers agree that there are a myriad of options from consolidation to carveouts.

“There are a lot of people who want to produce specialty chemicals domestically,” says Joe Wilson, president and CEO of Toll Solutions, a specialty and custom-chemical manufacturer.

“Even ones that have production in Canada and Mexico. European producers are really struggling. We are getting new business from both existing and new customers.”

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