Platinum Equity has completed the acquisition of Solenis, a leading global producer of specialty chemicals used in water-intensive industries.
As part of the transaction, Solenis has merged with Sigura Water, an existing Platinum Equity portfolio company, for a total combined transaction value of approximately $6.5 billion. The combined company generates approximately $3.5 billion of revenue and serves a diverse range of customers around the world in consumer, industrial, and pool water treatment markets.
Headquartered in Wilmington, Delaware, Solenis supplies innovative specialty chemicals and services for process, functional and water treatment applications in two primary segments: Consumer Solutions (consumer and food packaging, graphic paper and tissue and towel markets) and Industrial Solutions (core water treatment and wastewater markets). Founded in 1907, its service-intensive business model relies on more than 1,400 highly trained sales technicians operating onsite at customer locations around the world.
With this merger, Solenis is expanding its portfolio to include the residential and commercial pool water and spa treatment markets of Sigura. As a result, the merger also widens the global footprint of Solenis, which will now span 120 countries, 47 manufacturing facilities, and more than 6,000 employees. Solenis CEO John Panichella will lead the combined company following the transition and integration. Robert Baird, CEO of Sigura, remains as president of the new Pool Solutions division at Solenis.
"This exciting new transition to Platinum Equity helps us expand the Solenis legacy started more than a century ago," said John Panichella, CEO of Solenis. "With increasing demand for a world that's safer, healthier and more sustainable, Solenis is well-positioned to continue driving sustainable solutions — and delivering measurable results — for our customers."
"The addition of Sigura positions Solenis as a more diversified water treatment leader, with increased profitability and attractive growth opportunities," added Panichella. "Sigura's industry-leading position in the pool solutions market and innovation-focused team complement our current offerings. As we welcome Robert and his team to Solenis, I'm excited for this opportunity to move forward together and focus on enhancing our customers' profitability, sustainability, and healthier water treatment options."
"Both the Sigura and Solenis teams have already been working hand-in-hand planning our integration," said Robert Baird, President of the new Pool Solutions segment at Solenis. "Although we have diversity in our end-markets, it is exciting to note the similarities in our company cultures. During the next few months, we will remain focused on serving our customers while executing our integration, which should be seamless to all our customers. I look forward to joining the Solenis leadership team and working with John and his team to strengthen our businesses together."
"Sustainability is one of the most vital issues facing companies across the globe, and Solenis will continue to be a leader in bringing sustainable solutions to its customers facing complex challenges like waste elimination and water and energy use reduction," said Jacob Kotzubei, Partner at Platinum Equity. "We look forward to working with the management team at Solenis to create a true market leader in water treatment and sustainability solutions with increased scale, reach, and diversification."
"With the closing of this Solenis acquisition and simultaneous merger of these two industry-leading companies, Solenis will now have the ability to reach a new, diversified market of customers and expand its portfolio by incorporating Sigura's complementary resources, production capabilities, and water care solutions into its business," said Todd Golditch, Managing Director at Platinum Equity. "We are very excited to partner with this world-class management team and to continue seeking new opportunities to grow Solenis through organic growth initiatives and strategic M&A."
The Valence Group of Piper Sandler served as exclusive financial advisor to Platinum Equity on the acquisition of Solenis. Gibson Dunn & Crutcher LLP provided legal counsel and Willkie Farr & Gallagher LLP provided debt financing counsel to Platinum Equity. BofA Securities and Goldman Sachs led the debt financing for the acquisition.