Chemicals Update: Fourth 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.
- Q4 2011 had $1.85 billion value of deals in which U.S.-based buyers acquired foreign companies. U.S.-based buyers continue to acquire foreign targets in an effort to diversify revenue across different geographies.
- Total deal volume decreased by 17% from Q4 2010 to 74 deals during Q4 2011. Total announced deal volume was up incrementally for 2011 to 324 announced deals from 321 during 2010.
- Average transaction value was over $141 million during Q4 2011, which was a greater than 7% increase from the average transaction value in Q4 2010 of $132 million.
- The global outlook for chemicals again hinges on healthy economic growth in China during 2012, with Europe, Japan and the U.S. in slow to no-growth mode. Demand growth near 10% in China is expected to power all of industry higher in 2012.
Download the Chemicals Update below.