Diversey has entered into a definitive merger agreement with specialty chemical manufacturer Solenis, a portfolio company of Platinum Equity.

Under the terms of the agreement, Solenis will acquire Diversey in an all-cash transaction valued at an enterprise value of approximately US$4.6 billion.

Solenis is a manufacturer of specialty chemicals used in water-intensive industries, which was acquired by Platinum Equity in 2021.

Diversey shareholders will receive $8.40 per share in cash, a premium of approximately 41 per cent over the company’s closing share price on March 7.

The merger is expected to be completed in the second half of 2023, subject to the satisfaction of customary closing conditions, including approval by Diversey shareholders.

Upon successful completion of the merger, Diversey will become a private company.

Phil Wieland, Diversey CEO said the merger presents a unique opportunity to enhance value and create a more diversified business with increased scale, broader global reach, and superior customer service capabilities.

“It will enable the combined company to grow and provide a number of attractive cross-selling opportunities, including meeting increasing customer demand for water management, cleaning, and hygiene solutions.”

Eric Foss, non-executive chairman of the board of directors of Diversey, said the merger is “fully complementary”.

“We believe the transaction creates significant value realisation for our shareholders.”

Solenis CEO John Panichella will lead the combined company following the transition and integration.

“This is a strategic combination of two leading global products, services, and technologies providers with proven track records of product innovation who offer truly differentiated solutions to customers,” said Panichella.

“In combining these two complementary businesses, we expect to usher in a new and exciting chapter in our long history of helping customers tackle core challenges such as water and energy management, partnering on sustainability issues to work towards a cleaner, safer world, and reducing environmental impacts.

“With continued support from Platinum Equity and now Bain Capital, we are confident that we’ll maximise the opportunities ahead.”

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