Platinum Equity has signed a definitive agreement to acquire Solenis, a global producer of specialty chemicals used in water-intensive industries, from Clayton, Dubilier & Rice 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. The combined company is expected to serve a 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 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 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 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 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.