Led by Martin E Franklin, Florida-based Platform Speciality Products has agreed to buy chemicals producer Alent for $2.1bn.
According to a press statement released by Platform, Alent’s shareholders will receive 503 pence per share in cash – a premium of 43 percent from Friday’s closing price. Alternatively, shareholders have the option of receiving Platform’s common stock instead of a cash payout.
Platform hopes to expand its product portfolio, particularly in surface treatment, as well as its global network
British firm Alent supplies engineered materials and speciality chemicals for industrial, automotive and electronic applications. Through the acquisition of Alent, Platform hopes to expand its product portfolio, particularly in surface treatment, as well as its global network. The group expects the acquisition to earn pre-tax savings of $50m per annum, following a three-year transition period. Alent will be integrated into the same division as rival MacDermid – a previous acquisition, which Platform purchased in 2013 for $1.8bn.
“The proposed acquisition of Alent marks a further step in the Platform strategy of building a portfolio of best-in-class ‘Asset-Lite, High-Touch’ businesses in the specialty chemicals industry”, Franklin said in the press release. “Alent is a terrific fit and rebalances the portfolio as we continue to build the company.”
The deal is expected to close by the end of this year or early 2016, following shareholder and regulatory approval.
Franklin, who also heads consumer brands group Jaden, established Platform in 2013 in order to purchase chemical firms. The Alent buy-out is the latest in a string of deals that has enabled Platform to grow its reach and widen its product offerings considerably. In just two years, the investment group has become a big player in the global speciality chemicals market.