Chemicals Update: First Quarter 2013
Deloitte Corporate Finance LLC
This quarter’s Chemicals Update, produced by Deloitte Corporate Finance LLC (DCF), summarizes recent transactions within this industry along with information on active buyers, current transaction valuation multiples and an overview of the public market’s perception of the industry.
- The average announced transaction value for Q1 2013 was $249 million, which is relatively lower than the average transaction values of $475 million in 2012 and $351 million in 2011. The transaction value declined in part due to the lack of mega deals this quarter.
- The industry witnessed a decline in deal volumes this quarter. 55 deals were announced in Q1 2013 in comparison to 98 deals in Q4 2012 and 58 deals in Q1 2012. The lower deal volume in Q1 2013 can be attributed to the higher valuation multiples, reduced private equity transactions, and possible economic concerns of chemical companies.
- The chemicals industry continues on a path of portfolio realignment. Strategic players continue to divest non-core assets as a part of their strategy to focus on high-margin offerings where they enjoy a competitive advantage. The trend can be seen through PolyOne Corp.’s divesture of its resin assets to Mexichem SAB and Dow Chemical’s sale of its global methyl tin stabilizers and solid lubricants business to PMC Group.
To read more, download the Chemicals Update.