Chemicals manufacturer gets set for new acquisition opportunities
YORKSHIRE chemicals manufacturer and distributor, the GRI Group, is to sell its Belgian subsidiary as it gets set to focus on “exciting” acquisition prospects in the pipeline.
The Sheffield-headquartered group has exchanged contracts to sell TensaChem S.A, to Malaysian-based Kuala Lumpur Kepong Berhad (KLK), a major producer of oleochemicals (chemicals derived from plant and animal fats).
The transaction is subject to certain European regulatory approvals and is expected to complete within two months. Initial consideration for the deal is €16.2m, and is subject to adjustment up to a maximum total consideration of €17.6m.
Graham Royle, chairman and CEO of GRI Group, said: “TensaChem is renowned for its technology, quality and service and has been a hugely successful part of GRI Group since 2002.
“KLK has exceptional worldwide connections in the markets in which TensaChem operates and, as a vertically integrated producer of the key raw materials used by TensaChem, will make a superb strategic parent to provide TensaChem’s next chapter of growth.
“As for GRI Group, we have some exciting acquisition prospects in the pipeline, which can now receive our full attention.”
TensaChem is based on a 10 hectare site in Liege, Belgium and is a manufacturer of a wide range of anionic surfactants and speciality chemicals, which are sold globally into the personal care, household care and industrial sectors. TensaChem generates annual revenues of around €85m.
Sheffield-based advisers, law firm Nabarro and corporate finance advisers BHP Corporate Finance, acted on behalf of GRI Group.
Ben Hendry, partner at Nabarro Sheffield said: “We are delighted to have worked with GRI Group on the transaction. KLK is an excellent home for TensaChem and we are confident that this deal will prove beneficial for all parties. It’s great news that GRI Group is on the acquisition trail, too, and we look forward to working with Graham and the team on future transactions.”
David Forrest, partner at BHP Corporate Finance added: “This deal is a classic example of a strategic sale to a strategic buyer. Graham and his team have developed TensaChem into a highly successful, world class producer during their period of ownership and, in KLK, the business has the perfect new parent. We have enjoyed playing our part in this deal, are looking at a number of acquisition opportunities and very much look forward to continuing to work with Graham and his team in executing his vision for GRI Group.”
