Rotterdam, 14 October, 2022/San Francisco, October 13, 2022 – Advent International (“Advent”), one of the largest and most experienced global private equity investors with a well-established track record in chemicals, and Wilbur-Ellis, one of the largest family-owned companies in the world, today announced that they have reached an agreement to merge their life sciences and specialty chemicals solutions businesses, Caldic B.V. (“Caldic”) and Connell, to create a global leader in its sector.

Caldic, a global provider of specialty ingredients and chemicals for the life sciences and industrial formulation markets with a major presence in Europe, North America and Latin America, will benefit by increasing its global presence through a merger with Connell, which is one of the major players in Asia-Pacific.

Under the ownership of Advent and Wilbur-Ellis, the combined company will benefit from two strong shareholders committed to build a leading global platform offering thorough expertise in specialty ingredients and chemicals solutions and distribution in two high-growth regions: in Asia-Pacific with Connell and in Latin America with Caldic-GTM, following Caldic’s merger with GTM in March 2022. By extending Caldic and Connell’s global footprint, the merger will accelerate growth opportunities for both principals and customers and drive further investments into people, technical labs, and sites. Together, Caldic and Connell will have more than 3,800 employees across 43 countries, which provide solutions to over 35,000 customers by leveraging 75 formulation centers and application labs and deep application know-how. The combination will generate sales of about EUR 3 billion.

Ronald Ayles, Managing Partner at Advent International, said: “By bringing together the highly complementary businesses of Caldic and Connell, we will form a truly global business with significant exposure to high-growth regions and very diversified end markets with a high value-add offering. In Wilbur-Ellis, we have found a committed partner who shares our long-term vision of building a fully integrated growth and innovation focused business. We look forward to working together with Wilbur-Ellis and the management teams of both Caldic and Connell in this exciting new chapter which brings synergistic business development opportunities for principals and customers alike.”

John Buckley, Wilbur-Ellis President and Chief Executive Officer, said: “We couldn’t be more excited about the partnership between Connell and Caldic. With Caldic’s strong global position, and Connell’s 125-year presence in Asia-Pacific, the partnership will immediately establish a global, privately-held specialty chemicals and ingredients distribution leader. The combined organization will provide a broad range of solutions for customers.”

In recent years, Caldic has stood out as a rapidly growing, innovation-driven player. The company continuously invests into value-add capabilities and has established itself as a leading player in attractive and high-growth life science end-markets. Caldic’s management team has a track record of acquiring companies and subsequently integrating and accelerating their growth under its ownership.Alexander Wessels, CEO, Caldic, state

d: “We are thrilled that Advent is partnering with Wilbur-Ellis as this will create a unique opportunity to combine two major players, Caldic and Connell, each with a strong family heritage who are supported by a strong private shareholder base with extensive expertise in the sector. Bringing together similar entrepreneurial cultures and complementary geographies reinforces our ambition to establish Caldic as a global growth platform with a significant presence in two high-growth regions, Asia-Pacific and Latin America. This is an exciting moment to join forces as we accelerate our growth and firmly position the business as one of the major global players in our industry.”

Connell’s product portfolio includes specialty chemicals and ingredients for life science segments such as food, pharmaceuticals, and personal care, as well as industrial segments, such as coatings, rubber and lubricants. With a significant presence in Asia-Pacific, Connell’s strengths lie in its world-class network of principals, combined with technical and marketing expertise, and its extensive presence in local segments. These strengths enable Connell to meet customer-specific requirements through customized formulation and marketing support and dedicated, value-added blending capabilities, which it has built out over its 125 years of local presence across the Asia-Pacific region.

Azita Owlia, who will serve as CEO of the combined entities in Asia-Pacific, added: “In terms of value creation, this is a huge win for our customers, suppliers, and employees. We will be stronger than ever and able to bring reach and capabilities to the segments we serve, as well as global growth opportunities for our employees.”

The transaction is expected to close in the first quarter of 2023 subject to customary conditions and regulatory approvals. Terms of the agreement were not disclosed.

Wilbur-Ellis and Connell were advised in this transaction by Rabobank and Natrium Capital, joint financial advisors.

Frankfurt, May 31, 2022 – Advent International (“Advent”), one of the largest and most experienced global private equity investors with a well-established track record in Chemicals investing, and specialty chemicals company LANXESS are establishing a joint venture for engineering and high-performance polymers. The two companies today signed an agreement to acquire the DSM Engineering Materials business (DEM) from Dutch group Royal DSM, which will become part of the new joint venture. The Enterprise Value is around EUR 3.7 billion and will be financed by the joint venture via equity from Advent and external debt. The business represents sales of around EUR 1.5 billion with an EBITDA margin of approximately 20 percent. DEM is one of the leading global suppliers in high-performance specialty materials that address key market needs in electronics, electrical and consumer goods.

In addition, LANXESS is combining its High Performance Materials (HPM) business unit with DEM. HPM is one of the leading suppliers of engineering and high-performance polymers, which are used primarily in the automotive industry. The business represents annual sales of around EUR 1.6 billion with EBITDA pre exceptionals of around EUR 200 million.

The combined company will have sales of about EUR 3 billion. The transaction is still subject to approval by the authorities. Closing is expected in the first half of 2023. Advent will hold at least 60 percent in the joint venture, LANXESS a stake of up to 40 percent.

Ronald Ayles, Managing Partner at Advent International said: “Joining forces with LANXESS in this industry transforming transaction is a highlight for Advent as we have built a trusted, longstanding relationship and share the highest mutual respect. Together we plan to bring the experience, deep sector know-how, and financial resources to make the joint venture a global success story for everyone involved. The combination of LANXESS’ High-Performance Materials (HPM) and DSM Engineering Materials (DEM) creates a strong platform and brings together extensive expertise, resulting in the best opportunities for employees and more value for customers.”

LANXESS CEO Matthias Zachert added: “LANXESS will once again become significantly less dependent on economic fluctuations. In addition, we as LANXESS will strengthen our balance sheet with the proceeds from the transaction and gain new scope for the further development of our Group. With the new joint venture, we are forging a strong global player in the field of high-performance polymers. The portfolios, value chains and global positioning of the two businesses complement each other perfectly. With its innovative products, the joint venture will be able to play a key role in shaping future developments – for example in the field of electromobility. In Advent, we have a strong and reliable partner with profound experience in the chemical industry and our customer industries.”

Global set-up and high backward integration
Advent International will be the majority owner of the newly created joint venture and has extensive investment experience in the global chemical sector with a proven track record in transforming companies from corporate carve-outs into industry-leading players. Advent also fosters the growth and market position of portfolio companies through further acquisitions and organic investments.

DSM’s Engineering Materials business comprises polyamides (PA6, PA66) as well as various specialty materials (PA46, PA410 and specialty polyesters as well as PPS). Around 2,000 employees work for the division at 9 production and 7 research sites in all relevant markets worldwide. In addition to Europe and the US, the business has a particularly strong presence in Asia.

LANXESS’ High Performance Materials (HPM) business unit is one of the leading producers of PA6 and PBT engineering polymers and thermoplastic fiber composites. A total of 2,000 employees at 10 production and 7 research sites worldwide work for HPM. The global production network is characterized by a high degree of backward integration. The backbone is the Antwerp/Belgium site. There, HPM produces not only PA6 polymers but also relevant precursors such as cyclohexanol, cyclohexanone, caprolactam and glass fibers.

Sustainable product portfolio
Both DEM and HPM are pioneers in sustainability, offering bio- and recycled-based alternatives across their product portfolios.

For example, LANXESS recently launched a new high-performance polymer that is made from 92 percent sustainable raw materials. In producing the polymer, LANXESS uses “green” cyclohexane from sustainable sources such as rapeseed oil or other biomass as a raw material. It is reinforced with 60 percent by weight glass fibers recycled from industrial glass waste.

Advent International is committed to partnering with portfolio companies, leveraging collective expertise, to enact more sustainable long-term growth. In the joint venture, the partners will continue to focus on ESG management while committing to creating a more sustainable future.

Future-oriented applications
The automotive industry is a focus for the new joint venture. There, the polymers are used, among other things, for lightweight elements in structural parts but also in the interior and often replace metal parts. In this way, weight can be saved and CO2 emissions reduced. An important growth area is electromobility. Here, polymers are used, for example, in the construction of battery and charging systems, electronic control systems and power electronics.

In addition, the materials are used in the electrical and electronics industry, for example in components for smartphones, IT and household appliances.

MUMBAI, INDIA, February 08, 2021 – Advent International (“Advent”), one of the largest and most experienced global private equity investors, today announced that it has signed a definitive agreement to acquire a majority stake in ZCL Chemicals Limited (“ZCL”), one the fastest growing pharmaceutical companies in India. The business was formerly known as Zandu Chemicals Ltd.

With this transaction, Morgan Stanley Private Equity Asia (MSPEA), a private equity platform that previously managed a minority investment in ZCL, will exit their investment.

ZCL is one of the fastest growing manufacturers of specialty active pharmaceutical ingredients (APIs) and advanced intermediates. ZCL’s highly specialised approach focuses on niche therapeutic areas, underpinned by complex chemistry, supported by a state-of-the-art U.S. Food and Drug Administration (FDA) approved facility, along with strong research & development capabilities. The company has delivered impressive growth over the past few years, has leading market positions in its existing products, and is developing a strong pipeline of high potential products that is expected to drive the next phase of its growth.

“ZCL will be our third pharmaceuticals investment in India and the second in the API space. ZCL is a high-growth business, led by a capable management team, which will further fortify our presence in the API market, a key sub-sector focus of ours,” said Shweta Jalan, a Managing Director and Head of India at Advent International, India.

Over the last 12 months, Advent has committed over $1.2 billion globally across the healthcare sector. The firm has also committed over $600 million in four Indian businesses over the same period in varied sectors such as healthcare, consumer, and financial services amongst others.

“We are impressed with ZCL’s differentiated product portfolio, strong pipeline and its high focus on quality and compliance. The acquisition of ZCL helps us get closer to our goal of creating a top five merchant API platform in India,” said Pankaj Patwari, Director, Advent International India.

“We are very pleased with this transaction and excited to partner with Advent. In the last 12 years we have established ZCL as one of the leading pure-play API companies in the country, and today marks an important milestone in these efforts. We are very excited for the future of ZCL, and strongly believe Advent’s global expertise in the pharmaceutical space, combined with ZCL’s strong capabilities in manufacturing and R&D and a culture of customer centricity, will ensure that we keep up our tradition of delivering immense customer value,” said Nihar Parikh, Executive Director of ZCL Chemicals Ltd.

“ZCL was one of MSPEA’s first investments in the Healthcare and Life Sciences sector in India, and we are happy with the progress the company has made in the last 4 years. Today, it is well positioned to embark on the next phase of growth, with a strong product portfolio and focus on quality standards”, said Nirav Mehta, Managing Director and Co-Head of Morgan Stanley Private Equity India.

Advent has been investing in India since 2007. In this time, it has deployed over $1.7 billion in 12 companies with headquarters or operations in the country. In addition to ZCL, new investments in last 12 months include RA Chem Ltd, a vertically integrated pharmaceutical company; Bharat Serums and Vaccines (BSV), a biopharmaceutical leader in women’s health and critical care; and Aditya Birla Capital, the holding company of the financial services businesses of Aditya Birla Group (ABG), an Indian multinational conglomerate.

Advent has significant experience in the healthcare industry globally. In the past 30 years, the firm has invested or committed over $9.6 billion in 48 companies in the sector, including over 20 businesses involved in pharmaceutical R&D, production, and distribution. Recent pharmaceutical transactions include RA Chem Ltd, Bharat Serums and Vaccines, Sundia, Zentiva’s acquisition of Alvogen’s Central and Eastern European generics business, BioDuro, Industria Chimica Emiliana, Somar, Syneos Health and Zentiva.

The transaction will be subject to customary closing conditions.

ZCL Chemicals was advised by Jefferies (Sole Financial Advisor), Bombay Law Chambers (Legal Counsel) and Deloitte (Finance and Tax).