Chemicals Update: Fourth Quarter 2012
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.
- Average 2012 EV/EBITDA multiple was 10.8x for the 15 announced transactions with multiples, which is relatively higher than the average 2011 EV/EBITDA multiple of 9.0x for the nine announced transactions with multiples.
- Average announced transaction value of $484 million, which is substantially higher than average transaction values of $351 million in 2011 and $219 million in 2010.
- Private equity firms have shown significant interest in the chemicals industry and were responsible for many deals in Q4 2012.
- Mega deals are becoming a new trend in the chemicals industry.
- Strategic players are spinning-off non-core assets in order to focus on businesses where they hold a competitive advantage and can likely leverage their market position.
To read more, download the Chemicals Update.