Element Solutions, a global and diversified specialty chemicals company, announced that it has made a binding offer to acquire Coventya Holding, a global provider of specialty chemicals for the surface finishing industry. 

Under the terms of the offer, Element Solutions will pay approximately €420 million in cash, including the assumption or repayment of debt, subject to certain adjustments. The transaction is expected to close in late Q3 or Q4 2021, subject to receipt of certain regulatory approvals. 

Upon the closing of the transaction, Coventya will join MacDermid Enthone Industrial Solutions and will be reported within the company’s Industrial & Specialty segment. 

Coventya is a global specialist in developing metal finishing chemical technologies with an array of solutions that provide decorative and functional coatings for industrial end-markets in over 60 countries. The business has manufacturing facilities in Asia, Europe and the Americas and its products serve customers globally across automotive, fashion, construction, electronic, consumer goods, energy, and aerospace/military end-markets. 

Benjamin Gliklich, President and Chief Executive Officer, Element Solutions, said, “We are very pleased to announce our proposed transaction with Coventya. This is an excellent business that aligns seamlessly with our acquisition criteria and a company that we have admired for decades. Coventya has a long history of providing innovation and high-quality solutions in attractive niche markets like our own. We believe that Coventya’s deep customer relationships, solutions-orientation and outstanding team will improve our company and the breadth and quality of solutions we provide to our key markets." 

"With this acquisition, we expect our MacDermid Enthone Industrial Solutions business to benefit from enhanced scale and strong complementary product offerings. We enjoy nothing more than investing behind our robust businesses and leaders in equally great businesses and teams," added Gliklich. 

Gliklich continued, “We expect at least €13 million in annual synergies to be realized over the two years following the close of the transaction. In our markets, opportunities this size are rare, and we are thrilled to have found one consistent with our acquisition strategy of investing in markets we know and growing businesses we believe are better under our ownership.” 

Erik Weyls, CEO, Coventya said, “This transaction is a great milestone for our company. We expect Element Solutions to provide Coventya and its people with resources and capabilities that will accelerate our growth. This has long been a logical combination which we believe will provide customers with a broad suite of enhanced solutions that will be differentiated in our markets."