Element plans to buy Coventya

Speciality chemicals firm Element Solutions has made a binding €420 million offer to acquire Coventya Holding, a French-based supplier of metal-finishing speciality chemicals, from Silverfleet Capital. This should be completed in late Q3 or Q4 2021, subject to regulatory approvals, employee consultation and other customary closing conditions.

On completion, Coventya will become part of MacDermid Enthone Industrial Solutions and will be reported within Element’s Industrial & Specialty segment. President and CEO Benjamin Gliklich said that the division would “benefit from enhanced scale and strong complementary product offerings”.

Coventya is active in over 60 countries, mainly supplying the automotive, fashion, construction, electronic, consumer goods, energy, aerospace and military end-markets. It is expected to have sales of about €160 million and adjusted EBITDA of over €30 million in the current fiscal year. The price, factoring in expected synergies of €13 million/year in the first two years, represents <10x projected adjusted EBITDA.