 "Platform Specialty buys UK-based Alent for $2.3 bn")
Platform Specialty Products Corporation has acquired Alent Plc, a manufacturer of specialty chemicals and engineered materials, in a cash and stock transaction for approximately $2.1 billion. Including net debt, the total transaction value is approximately $2.3 billion.
The UK-based Alent is a global supplier of specialty chemicals and engineered materials used primarily in electronics, automotive and industrial applications. Alent supplies high performance consumable products and services which create value by enabling superior end-product performance in the areas of functionality, reliability and longevity. Alent's business comprises two business segments, Enthone (its surface chemistries business which provides electroplating chemistry to the electronics, automotive and industrial industries) and Alpha (its assembly materials business which offers interconnect materials, primarily into electronics applications).
Alent is a highly attractive business with compelling growth prospects and a proven financial track record. Platform believes the transaction will allow it to combine complementary product portfolios and geographical footprints. Additionally, it will improve the geographic range and product capabilities in surface treatment, expand Platform's product offering and provide an opportunity to unlock substantial value through the realisation of material costs synergies and sales growth opportunities. Platform believes that the combined group will be able to achieve annual pre-tax cost synergies of $50 million1 which are expected to be phased in over the three years after the transaction is completed.
Martin Franklin, founder and chairman, Platform, said, "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. This business and acquisition fits well within our stated objectives, and we are compelled by the value creation the combination may generate."
The UK-based Alent is a global supplier of specialty chemicals and engineered materials used primarily in electronics, automotive and industrial applications. Alent supplies high performance consumable products and services which create value by enabling superior end-product performance in the areas of functionality, reliability and longevity. Alent's business comprises two business segments, Enthone (its surface chemistries business which provides electroplating chemistry to the electronics, automotive and industrial industries) and Alpha (its assembly materials business which offers interconnect materials, primarily into electronics applications).
Alent is a highly attractive business with compelling growth prospects and a proven financial track record. Platform believes the transaction will allow it to combine complementary product portfolios and geographical footprints. Additionally, it will improve the geographic range and product capabilities in surface treatment, expand Platform's product offering and provide an opportunity to unlock substantial value through the realisation of material costs synergies and sales growth opportunities. Platform believes that the combined group will be able to achieve annual pre-tax cost synergies of $50 million1 which are expected to be phased in over the three years after the transaction is completed.
Martin Franklin, founder and chairman, Platform, said, "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. This business and acquisition fits well within our stated objectives, and we are compelled by the value creation the combination may generate."