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Chemicals Update: Third Quarter 2012

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:

  • Average YTD 2012 EV/EBITDA multiple of 11.5x for the 12 announced transactions with multiples, which is a considerable increase from average 2011 EV/EBITDA multiple of 9.0x for the 15 announced transactions with multiples.
  • Average announced transaction value of $542 million through Q3 2012, which was substantially larger than the average transaction values of $354 million in 2011 and $217 million in 2010.
  • The chemicals industry experienced a significant increase in the number of foreign buyers of U.S. companies. Foreign buyers invested about $13 billion in U.S. corporations, the highest in any quarter since 2008.
  • This quarter witnessed multiple mega-deals, significant amount of cross-border activity and increased private equity investment. With strategic buyers looking to spin-off non-core assets and financial buyers seeking to deploy capital in the sector, there is a hope for continued activity in the chemicals space in Q4 2012.

To read more, download the Chemicals Update.


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