Clayton, Dubilier & Rice has confirmed an agreement under which its portfolio company, Solenis, will be acquired by Platinum Equity. The transaction, expected to close before the end of 2021, implies an enterprise value for Solenis of $5.25 bn. CD&R and Solenis management currently collectively own 51% of Solenis, and chemical company BASF holds the remaining 49%. Both CD&R and BASF will fully exit Solenis as part of the transaction.
CD&R funds acquired a majority stake in Solenis from Ashland, Inc. in a July 2014 transaction that ascribed an enterprise valuation of $1.8 bn to Solenis. In 2019, Solenis merged with BASF’s Paper & Water Chemicals business, creating a leading solutions provider for the pulp and paper and water treatment industries.
“We’re proud to have supported Solenis’ growth strategy and have enjoyed working alongside the company’s talented team since our initial investment in 2014,” said Stephen Shapiro, Partner, CD&R. “In that time, Solenis has significantly expanded its global presence, strengthened its customer offerings and emerged as a sustainability leader. We’re pleased to have found a strong new investment partner for Solenis and look forward to following the company’s continued success.”
