Chemicals Update: Second Quarter 2011

Deloitte Corporate Finance LLC


This quarter’s Chemicals Update, produced by Deloitte Corporate Finance LLC (DCF), summarizes the most recent transactions within this industry along with information on the most active buyers, current transaction valuation multiples and an overview of the public market’s perception of the industry.

Highlights include:

  • The Chemicals industry incurred strong M&A activity during Q2 2011 with over $8.0 billion in announced deals, which is over three times the value of announced deals during Q2 2010. This large increase also helped raise the average transaction value to over $380 million during the quarter and over three times the average transaction value in Q2 2010 of $127 million.
  • Total deal volume during the quarter increased by 23% from Q2 2010 to 74 deals during Q2 2011 and is up over 20% for LTM Q2 2011 to 326 announced deals from 271 during LTM Q2 2010.
  • Divestiture activity is picking up as favorable M&A conditions have created an opportunity for Chemicals companies with non-core assets to streamline their operations. Additionally, private equity buyers are actively pursuing targets in the Chemicals industry as they acquired 13 such companies during Q2 2011, more than doubling activity during Q2 2010.

Download the Chemicals Update below.