Balchem Corporation Signs Definitive Agreement to Acquire Chemogas NV
May 02 2019 - 4:05PM
Balchem Corporation (NASDAQ: BCPC) today announced that it has
signed a definitive agreement to acquire Chemogas NV, a privately
held specialty gases company, headquartered in Grimbergen, Belgium,
from Benelux private equity firm Gilde Equity Management and
Chemogas management. The closing of the transaction is still
subject to the completion of customary closing conditions.
Chemogas’ 2019 revenues are expected to be approximately €29
million with an EBITDA margin of approximately 30 percent. The
transaction will be financed through the Company’s existing
revolving credit facility and cash on hand. The transaction is
expected to be accretive to Balchem’s earnings per share in 2019,
on an adjusted basis. Credit Suisse provided financial
advisory services on the transaction.
Chemogas has been a leader in the packaging and
distribution of a wide variety of specialty gases, most notably
ethylene oxide, primarily in the European and Asian markets, for
medical device sterilization. Through its operational and
logistical excellence, Chemogas supports its customers’ needs
across more than 70 countries.
With this acquisition, Balchem significantly
expands its geographic presence in the packaged ethylene oxide
market, enabling the company to offer worldwide service and support
to its medical device sterilization customers. The Chemogas sites
in Europe and Asia will form a global network of facilities when
combined with Balchem’s sites in the United States.
Ted Harris, Chairman, CEO, and President of
Balchem said, “With the acquisition of Chemogas NV, Balchem is now
the clear global leader in the critical supply of ethylene oxide to
the medical device sterilization industry”. Mr. Harris added, “We
are very excited to add Chemogas’ team of talented employees and
their extensive packaging and supply chain capabilities to Balchem.
The combination of our two companies will significantly enhance our
ability to service and support our customers on a more global
basis.”
Dirk Battig, CEO of Chemogas-Group, is very
pleased with this transaction: “Supported by majority shareholder
Gilde, we have further internationalized our footprint with the
acquisition of Stereo Group in Asia-Pacific. We are now ready to
leverage our leading position in Europe and the APAC-region, and
team up with Balchem to further strengthen our position as a true
global reference supplier of packaged specialty gases. We are
excited to take on this next step together with them.”
About Balchem Corporation
Balchem Corporation develops, manufactures and
markets specialty ingredients that improve and enhance the health
and well-being of life on the planet, providing state-of-the-art
solutions and the finest quality products for a range of industries
worldwide. The company reports four business segments: Human
Nutrition & Health; Animal Nutrition & Health; Specialty
Products; and Industrial Products. The Human Nutrition & Health
segment delivers customized food and beverage ingredient systems,
as well as key nutrients into a variety of applications across the
food, supplement and pharmaceutical industries. The Animal
Nutrition & Health segment manufactures and supplies products
to numerous animal health markets. Through Specialty Products,
Balchem provides specialty-packaged chemicals for use in healthcare
and other industries, and also provides chelated minerals to the
micronutrient agricultural market. The Industrial Products segment
manufactures and supplies certain derivative products into
industrial applications. For more information please visit
www.balchem.com
About Chemogas
Chemogas NV, originally founded in 1975 and
headquartered in Grimbergen (Belgium), is a global leader in the
filling, blending, worldwide marketing and distribution of chemical
gases and liquids, as well as related services. The company is one
of the premier global providers of packaged Ethylene oxide to the
medical sterilization industry, with exports to more than 70
countries. Chemogas also supplies natural refrigerant gases (like
ammonia, propylene etc.) and other specialty gases for the use in a
broad spectrum of industries. Over the years, the Company
successfully developed a predominant position as an officially
registered Waste Treatment Centre and Waste Collector within its
market segments, also providing recycling services for packaged
gases. The Chemogas Group, being a top tier SEVESO company, holds
the ISO 9001,ISO 14001, ISO 13485 and OHSAS 18001 certifications.
For more information please visit www.chemogas.com
About Gilde Equity Management (GEM)
Benelux
Gilde Equity Management (GEM) Benelux is an
independent private equity firm with over EUR 1 billion in assets
under management. It is one of the leading investors in
medium-sized companies in the Benelux countries and has achieved
successful international growth for many companies. Examples of
investments of Gilde are Belgium based Actief Interim, one of the
leading independent staffing agencies in Western-Europe; Fruity
Line, a producer of premium freshly squeezed fruit and vegetable
juices and smoothies; EV-Box, the leader in charging solutions for
electric vehicles undergoing strong international expansion; and
Dunlop Protective Footwear, the oldest manufacturer of boots in the
Netherlands that has become the global market leader. For more
information please visit www.gembenelux.com.
Forward-Looking Statement
This release contains forward-looking
statements, which reflect Balchem’s expectation or belief
concerning future events that involve risks and uncertainties.
Balchem can give no assurance that the expectations reflected in
forward-looking statements will prove correct and various factors
could cause results to differ materially from Balchem’s
expectations, including risks and factors identified in Balchem’s
annual report on Form 10-K for the year ended December 31, 2018.
Forward-looking statements are qualified in their entirety by the
above cautionary statement. Balchem assumes no duty to update its
outlook or other forward-looking statements as of any future
date.
Contact:
Mary Ann Brush, Executive Assistant to CEOTelephone:
845-326-5600E-mail: mabrush@balchem.com
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