Specialty Chemicals Reviewig.cdn.responsys.net/i3/responsysimages/kyb1/__RS_CP... · 2016-04-22 ·...

Chemical M&A Update

According to A.T. Kearney, global chemicals M&A deal values rose by 30 percent to $110 billion in 2015, the fourth straight annual

increase in deal value. With the announcement of Dow Chemical and DuPont's $130 billion merger and ChemChina’s $43 billion bid for

Syngenta coupled with potential large new transactions generated by emerging-market players, chemical M&A values for 2016 could

double last year’s levels. The surge in M&A activity is being driven by limited returns on organic growth options, favorable feedstock

prices, lower oil prices, portfolio optimization and pressure from activist investors, as chemical companies reevaluate the value of

traditional diversification models and pursue more distinct business models.

Global Plastics Outlook

According to Mark Eramo, business development vice president with IHS Chemical, global commodity resin pricing is expected to remain

relatively low in the short term, with prices potentially rebounding in 2017 as oil prices increase. Global oil demand growth has slowed,

as supply, largely from new U.S. production related to fracking and horizontal drilling has come to market. Within the plastics sector,

many commodity resins have experienced global overcapacity due in part to overbuilding in China. However, plastic feedstocks ethylene

and propylene are expected to experience above average GDP growth through 2020. Polyethylene, which comprises of 38% of the

major thermoplastics market, is expected to grow at or slightly above global GDP, just over 3%. Polypropylene (26% of the plastics

market share) is expected to grow at or above GDP levels through 2020, as suppliers of the material are long globally and short in North

America. PVC (18%) and PET bottle resin (8%) are expected to see growth rates in line with GDP growth as major overbuilding of PVC

material in China could create downside risk in pricing and increased availability of recycled PET has reduced demand for prime grades

of the materials. Polystyrene (4%) should see growth levels below that of GDP, as it competes with lower-priced materials and has

limited demand growth with now new investment in capacity.

Mergers & Acquisitions and Capital Markets Update (see pg. 3-13)

On March 20, The Sherwin-Williams Company agreed to acquire Valspar, the Minneapolis, Minnesota-based manufacturer of

coatings and paints, for $11.3 billion (2.6x LTM 1/29/2016 sales and 16.3x LTM 1/29/2016 EBITDA).

On February 24, Breen Color Concentrates, a portfolio company of Capital Partners, acquired Hudson Color Concentrates, the

Leominister, Massachusetts-based manufacturer of custom engineered color concentrates. KeyBanc Capital Markets acted as

buy-side advisor to Breen Color Concentrates

On February 22, Polymer Solutions Group acquired Flow Polymers, the Cleveland, Ohio-based manufacturer of additives and

dispersions for the rubber and plastic industries from Geneva Glen Capital. KeyBanc Capital Markets served as exclusive sell-

side advisor to Flow Polymers

On February 1, Audax Group acquired Preferred Compounding, the Barberton, Ohio-based developer and manufacturer of highly

specialized, value-added elastomeric compounds in North America from Wingate Partners. KeyBanc acted as the exclusive sell-

side advisor to Preferred Compounding

Source: Company Filings, Press Releases, IHS Chemical Week, ICIS, Plastic News, American Chemistry Council

Markets Update (see pg. 16)

The KeyBanc Capital Markets’ (“KBCM”) Specialty Chemicals Index rose 6.7% in Q1’16, compared to a 0.8% increase in the S&P

500. The Chemical Index is down 10.5% over the last year vs. a 0.4% decrease for the S&P 500.

1

Disclosure: KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., Member

NYSE/FINRA/SIPC, and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities

representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A. This report was not issued by our research department. The information

contained in this report has been obtained from sources deemed to be reliable but is not represented to be complete, and it should not be relied upon as such. This report does not purport to be a complete

analysis of any security, issuer, or industry and is not an offer or a solicitation of an offer to buy or sell any securities. This report is prepared for general information purposes only and does not consider the

specific investment objectives, financial situation and particular needs of any individual person or entity.

Specialty Chemicals Review

2

Source: Bloomberg

Natural Resources

$0.5

$0.9

$1.3

$1.7

$2.1

$2.5

Mar-15 Jun-15 Sep-15 Dec-15 Mar-16

US

$ /

MT

Palm Oil (Rotterdam) Nat. Rubber (Singapore)

NAT . RE S OURCE S P alm Oil Nat. Rubber

End of Month Price $1.68 $1.00

MoM % Change 13.5% (12.3%)

YoY % Change 2.3% (33.5%)

E NE RGY Crude Oil Natural Gas


MoM % Change 13.6% 20.0%

YoY % Change (19.5%) (26.1%)

$0.0

$1.2

$2.4

$3.6

$4.8

$6.0

$0

$25

$50

$75

$100

$125


US

$ / M

MB

tuUS

$ /

bb

l

Crude Oil (WTI) Nat. Gas (Henry Hub)

Natural Resources

Petrochemicals (Gulf Coast)

OLE FINS E thylene P ropylene


MoM % Change 13.6% 29.4%

YoY % Change (26.5%) (40.5%)

$0.0

$0.2

$0.4

$0.6

$0.8


US

$ /

lb

Ethylene Propylene

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$0.0

$1.0

$2.0

$3.0

$4.0


US

$ / lb

US

$ /

ga

l

Benzene Toluene Styrene

AROM AT ICS Benzene T oluene S tyrene

End of Month Price $2.10 $2.00 $0.47

MoM % Change 16.7% 14.9% 9.1%

YoY % Change (17.7%) (20.0%) (11.8%)

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

Mar-14 Sep-14 Mar-15 Sep-15 Mar-16

US

$ /

lb

PP PS PVC

P LAS T ICS P P P S P V C

End of Month Price $0.71 $0.99 $0.73

YoY % Change (24.5%) (16.1%) (35.6%)

2-Year % Change (38.3%) (28.8%) (35.0%)

$0.4

$0.6

$0.8

$1.0

$1.2

Mar-14 Sep-14 Mar-15 Sep-15 Mar-16

US

$ /

lb

HDPE LDPE

P LAS T ICS HDP E LDP E


YoY % Change (31.7%) (28.4%)

2-Year % Change (40.2%) (36.5%)

Plastics

Raw Material Price Trends (Through March 31, 2016)

3

Source: Company Filings, Press Releases, ChemWeek, Capital IQ

Closed

(Announced)

Acquirer

(Parent)

Target

(Seller) Highlights

4/1/2016

(3/31/2016)

Teknor Apex Co. PTS Plastic-

Technologie-Service,

Marketing und

Vertriebs GmbH

Teknor Apex acquired PTS Plastic-Technologie-Service (“PTS”), the German-based

manufacturer of thermoplastic elastomers and engineering thermoplastics

The acquisition of PTS is a natural fit in the strategic vision of Teknor Apex to support

the market with a global footprint and local presence

The PTS deal represents Teknor Apex’s first acquisition since early 2014 when it

bough PVC compounder Viking Polymers

Pending

(3/31/2016)

Transilwrap

Company, Inc.

(The Jordan

Company, L.P.)

Global Specialty

Films Business

(The Dow Chemical

Company)

Transilwrap Company agreed to acquire the Global Specialty Films Business of the

Dow Chemical Company

The Global Specialty Films Business provides film solutions used in medical,

packaging and industrial markets and specializes in the production of blown oriented

polystyrene films and co-extruded multilayer barrier and polyolefin films for global

customers, through manufacturing facilities in Hebron, Ohio and Drusenheim, France

The acquisition will support accelerated growth and global expansion in Transilwrap’s

strategic market segments, including healthcare and packaging

Pending

(3/29/2016)

Silverfleet Capital

Partners

Coventya SAS

(Equistone Partners

Europe)

Silverfleet Capital Partners agreed to acquire Coventya, the French-based

manufacturer and supplier of specialty chemicals for surface finishing

The acquisition provides Coventya with the partners necessary to expand the

Company’s operations in the U.S. and Asia, as it looks to close the gap with Total

and Platform Specialty Chemicals

Pending

(3/28/2016)

Elite Comfort

Solutions

(Arsenal Capital

Partners)

Foam Solutions

Division

(Hickory Spring

Manufacturing

Company)

Elite Comfort Solutions agreed to acquire the Foam Solutions Division (“HSM Foam”)

of Hickory Spring Manufacturing Company

HSM Foam is one of the largest producers of flexible polyurethane foam in North

America, providing hundreds of foam formulations for furniture, bedding, medical and

packaging market applications

The acquisition will help broaden Elite Comfort Solutions’ scope in terms of market

reach, technical ability and foaming know-how, becoming a strong, larger forward-

looking foam producer

Pending

(3/28/2016)

Arsenal Capital

Partners

Elite Foam, Inc. Arsenal Capital Partners agreed to acquire Elite Foam, the Newnan, Georgia-based

manufacturer of specialty flexible polyurethane foam for the bedding and home

furnishings industry

Arsenal Capital Partners will merge Pacific Urethanes, Elite Foam and Hickory

Springs Manufacturing Company’s Foam Production Assets to form a leading

specialty foam platform under the Elite Comfort Solutions name

3/22/2016

(3/22/2016)

Univar Inc. Nexus Ag. Business

Inc. Univar acquired Nexus Ag. Business, the Canadian-based wholesale fertilizer

distributor

The acquisition enhances Univar’s existing macronutrient and crop protection inputs

by adding a proprietary line of micronutrients, macronutrients and specialty fertilizers

while further strengthening the Company’s ability to provide customers in Canada

with a complete product and service offering that covers the entire growing cycle

3/21/2016

(3/21/2016)

Quantum Plastics,

LLC

Plasticos Promex

USA, Inc. Quantum Plastics acquired Plasticos Promex, the El Paso, Texas-based injection

molding manufacturer

The acquisition accelerates Quantum Plastics’ growth strategy, helping position the

Company as an ideal molder for a number of industries and manufacturing

operations in the South as well establishing the Company’s first international location

Select recent transaction activity

4

Closed

(Announced)

Acquirer

(Parent)

Target

(Seller) Highlights

3/21/2016

(3/21/2016)

Tillerman & Co. Jackson Flexible

Products, Inc.

(Ronald Jakubas)

Tillerman & Co. acquired Jackson Flexible Products, the Jackson, Michigan-based

supplier of custom-formulated rubber parts primarily used in the aerospace industry

The acquisition provides Jackson Flexible Products the resources necessary to invest

in research and development, new equipment and marketing to cultivate new

opportunities for growth to its employees, customers, suppliers and the Jackson

community

Pending

(3/21/2016)

Synthomer plc Hexion Performance

Adhesives &

Coatings

(Hexion Inc.)

Synthomer agreed to acquire Hexion Performance Adhesives & Coatings, the

Columbus, Ohio-based manufacturer of dispersions, additives, power coatings and

monomers, for $226 million (0.6x 2015 sales and 7.5x 2015 EBITDA)

The acquisition significantly strengthens Synthomer’s platform for continued growth in

the global dispersions and additives market, and in particular expands its presence in

the U.S. and Asia

Hexion Performance Adhesives & Coatings generated 2015 sales and EBITDA of

$370 million and $30 million, respectively

Pending

(3/21/2016)

WL Ross Holding

Corp.

Nexeo Solutions, LLC

(TPG Capital, L.P.) WL Ross Holding agreed to acquire a majority stake in Nexeo Solutions, the

Houston, Texas-based distributor of chemicals and plastics, for $1.7 billion (8.4x

2016E EBITDA)

The acquisition enables Nexeo Solutions the ability to utilize its strong, centralized

operating platform and access to multiple sources of capital to grow organically and

through acquisitions

Nexeo Solutions is expected to generate 2016E EBITDA of $198 million

Pending

(3/20/2016)

The Sherwin-

Williams Company

The Valspar

Corporation The Sherwin-Williams Company agreed to acquire Valspar, the Minneapolis,

Minnesota-based manufacturer of coatings and paints, for $11.3 billion (2.6x LTM

1/29/2016 sales and 16.3x LTM 1/29/2016 EBITDA)

The $113.00 per share cash offer represents a 35% premium over Valspar’s closing

price on March 18, 2016

The acquisition expands The Sherwin-William Company’s brand portfolio and

customer relationships in North America, significantly strengthens its Global Finishes

business and extends its capabilities into new geographies and applications,

including a scale platform to grow in Asia-Pacific and EMEA

The combined company would have pro form sales and adjusted EBITDA of

approximately $15.6 billion and $2.8 billion, respectively and 58,000 employees

The transaction is anticipated to close by the end of Q1’17

3/18/2016

(3/18/2016)

Arsenal Capital

Partners

Pacific Urethanes Arsenal Capital Partners acquired Pacific Urethanes, the Ontario, California-based

producer of specialty polyurethane foam materials

The acquisition represents Arsenal Capital Partner’s first investment in its strategy to

build a specialty foam solutions and technology platform

3/18/2016

(3/18/2016)

Americhem Group Vi-Chem Corporation

(Leonard and Emili

Slott)

Americhem Group acquired Vi-Chem, the Grand Rapids, Michigan-based supplier of

specialty engineered compounds used in injection molding, extrusion and blow

molding applications

The acquisition, the third in four years, brings Americhem extensive knowledge in

thermoplastic elastomers and PVC compounds, broadening the types of compounds

and material solutions it can provide to the market

Americhem will now generate annual sales close to $300 million


5


Closed

(Announced)

Acquirer

(Parent)

Target

(Seller) Highlights

3/31/2016

(3/16/2016)

INEOS AG INOVYN ChlorVinyls

Limited

(Solvay SA)

INEOS acquired the remaining 50% stake in INOVYN ChlorVinyls, the 50 / 50 joint

venture with Solvay, for $371.3 million

INEOS and Solvay formed INOVYN ChlorVinyls in July 2015, with Solvay’s exit

originally planed in July 2018

The acquisition allows Solvay to focus on its portfolio transformation, while achieving

a first step in de-levering the balance sheet

3/15/2016

(3/14/2016)

Prophet Equity Total Plastics, Inc.

(A.M. Castle & Co.) Prophet Equity acquired Total Plastics, the Kalamazoo, Michigan-based distributor of

plastic sheets, rods, tubes, films and tapes, for $55 million

The divestiture represents another significant step in A.M. Castle’s commitment to

de-lever its balance sheet and focus on its core metals business

3/14/2016

(3/14/2016)

Quantum Plastics,

LLC

3D Plastics, Inc.

(David Frye) Quantum Plastics acquired 3D Plastics, the Gladewater, Texas-based manufacturer

of blow and injection molded plastic products

The acquisition demonstrates Quantum Plastics’ commitment to growth and

diversification of its portfolio of industries and capabilities

With the acquisition, Quantum Plastics now boasts approximately 240 molding

machines and over 200 years of molding experience

3/14/2016

(3/14/2016)

Pasadena

Commodities

International, LLC

Pasadena, Texas

Facility

(Rentech Nitrogen

Partners, L.P.)

Pasadena Commodities International acquired the Pasadena, Texas Facility of

Rentech Nitrogen Partners

The acquisition calls for an initial cash payment to Rentech Nitrogen Partners of $5

million and a cash working capital adjustment, which is expected to be approximately

$6 million and an earn-out that would be paid to Rentech Nitrogen Partners’

unitholders equal to 50% of the facility’s EBITDA in excess of $8 million earned over

the next two years

The divestiture enables Rentech Nitrogen Partners to proceed towards closing its

merger with CVR Partners

3/7/2016

(3/7/2016)

Accella

Performance

Materials Inc.

(Arsenal Capital

Partners)

Quadrant Urethane

Technologies

Corporation

(Quadrant Chemical

Corporation)

Accella Performance Materials acquired Quadrant Urethane Technologies, the

McKinney, Texas-based manufacturer of open and closed cell spray foam insulation

products

The acquisition provides Accella Performance Materials with a strong product

portfolio of spray foam system solutions and services, allowing the Company to

further expand its footprint in spray foam insulation

3/7/2016

(3/7/2016)

Dorf Ketal

Chemical India

Private Limited

Flow-Chem

Technologies LLC Dorf Ketal acquired Flow-Chem Technologies, the Rayne, Louisiana-based provider

of specialty oilfield chemicals

The acquisition provides Dorf Ketal a ready conduit through existing contacts to

introduce its differentiated technologies to accelerate entry into the U.S. upstream

market

3/4/2016

(3/4/2016)

Brenntag AG ACU PHARMA und

CHEMIE GmbH Brenntag acquired ACU PHARMA, the German-based provider of contract

micronizing and milling, for $11.5 million (2.3x 2015 sales and 5.8x 2015 EBITDA)

The acquisition enables Brenntag to continue to expand its portfolio of value-added

services, particularly for customers in the Life Science segment and positions the

Company as a reliability, efficient partners in this part of the supply chain

ACU PHARMA generated 2015 sales and EBITDA of $4.9 million and $2.0 million,

respectively


6



Closed

(Announced)

Acquirer

(Parent)

Target

(Seller) Highlights

3/3/2016

(3/3/2016)

Rust-Oleum

Corporation

(RPM International

Inc.)

Seal-Krete

(Clayton Corporation) Rust-Oleum acquired Seal-Krete, the Auburndale, Florida-based manufacturer of

concrete care coatings and seals for the retail market

The acquisition expands Rust-Oleum’s range of concrete care products,

complementing its existing EpoxyShield and RockSolid lines and providing a

complete one-stop-shop for concrete care

Seal-Krete generates annual sales in excess of $10 million

2/29/2016

(3/3/2016)

Cyrus Investment

Management LLP

Ramp Surface

Coatings Ltd.

(Ramp Industries

Limited)

Cyrus Investment Management acquired Ramp Surface Coatings, the U.K.-based

manufacturer of aviation and defense surface coatings

The acquisition provides Ramp Surface Coatings with the resources necessary to

turnaround the Company

3/2/2016

(3/2/2016)

Hui Yu Xin

American

Corporation

(Dalian Hui Yu Xin

Technology

Development Co.,

Ltd.)

Clearon Corp.

(Israel Chemicals

Ltd.)

Hui Yu Xin American Corporation acquired Clearon, the Israeli-based manufacturer

and supplier of water treatment chemicals for the pool and spa industry

The divestiture is part of Israel Chemicals’ ‘Next Step Forward’ strategy to divest its

non-core businesses to focus on its core businesses in the agriculture, food and

engineered materials markets and to optimize its positioning in those markets

The sale does not include Israel Chemical’s brominated biocides business for

industrial applications which is a core activity and which the Company will continue to

operate separately from Clearon

3/2/2016

(3/2/2016)

Electronics for

Imaging, Inc.

Rialco Limited Electronics for Imaging (“EFI”) acquired Rialco, the U.K.-based supplier of dye

powders and color products for digital print and industrial manufacturing industries

The acquisition provides EFI the platform to accelerate the technical advantages it

provides to customers in the textile, signage, ceramics and other industries that are

rapidly transitioning from analog to digital printing

3/1/2016

(3/1/2016)

Molded Rubber &

Plastic Corporation

Johnson Precision,

Inc.

(CEPS, Inc.)

Molded Rubber & Plastic (“MRPC”) acquired Johnson Precision, the Hudson, New

Hamshire-based manufacturer of thermoplastic injection molded components and

sub-assemblies

The acquisition expands MRPC’s medical device component manufacturing

capabilities

2/29/2016

(2/29/2016)

Patrick Industries

Inc.

Parkland Plastics,

Inc. Patrick Industries acquired Parkland Plastics, the Middlebury, Indiana-based

producer and distributor of plastic panels made largely from recycled materials, for

$25 million (0.8x 2015 sales)

The acquisition provides Patrick Industries with the opportunity to enter into a new

product space and deliver value-added product lines to RV and building products

manufacturers and distributors

2/11/2016

(2/29/2016)

Midland Plastics

Inc.

Advanced Extrusions

Inc. Midland Plastics acquired Advanced Extrusions, the Franklin, Wisconsin-based

manufacturer of custom thermoplastic shapes, profiles, rods, tubings and flat stock

The acquisition expands the Midland Plastics custom manufacturing and extrusion

operations

Pending

(2/25/2016)

Galata Chemicals

LLC

(Artek Surfin

Chemicals Ltd.)

Solucor Inc.

(Axiall Corporation) Galata Chemicals agreed to acquire Solucor, the Canadian-based manufacturer of

high-quality additives for rigid PVC applications

This transaction represents Axiall’s third divestiture of non-core assets since April

2015 and will enable the Company to better focus on its core chlorovinyls and

derivatives businesses

7


Closed

(Announced)

Acquirer

(Parent)

Target

(Seller) Highlights

4/4/2016

(2/25/2016)

OpenGate Capital Window and Door

Profiles Business

(Axiall Corporation)

OpenGate Capital acquired the Window and Door Profiles Business of Axiall

This transaction, which represents Axiall’s fourth divestiture of non-core assets since

April 2015, leaves its Royal Building Products segment with the solid core product

lines that generate better EBITDA margins, namely its siding, trim, moulding, fittings

and pipe businesses

Pending

(2/24/2016)

Centerbridge

Partners, L.P.

Prestone Products

Corporation

(Rank Group

Investments)

Centerbridge Partners agreed to acquire Prestone Products, the Lake Forest, Illinois-

based manufacturer of antifreeze and coolant, for $230 million

The acquisition provides Prestone Products with the partners necessary to support

the Company through its next phase of growth

Pending

(2/24/2016)

Owens Corning Interwrap, Inc.

(Quad-C

Management, Inc.)

Owens Corning agreed to acquire Interwrap, the Canadian-based manufacturer of

coated woven packaging products and multi-layer laminated reinforced plastic

substrates, for $450 million (1.8x 2015 sales)

The acquisition will strengthen Owen Corning’s capabilities to continue driving the

conversion from organic to synthetic underlayment and accelerate growth

Interwrap generated 2015 sales of $250 million

2/1/2016

(2/24/2016)

Breen Color

Concentrates

(Capital Partners)

Hudson Color

Concentrates Inc. Breen Color Concentrates acquired Hudson Color Concentrates, the Leominister,

Massachusetts-based manufacturer of custom engineered color concentrates

The acquisition will expand Breen’s product mix by adding concentrates based on

nylon to the Company’s portfolio

The acquisition of Hudson Color Concentrates will increase Breen’s annual sales to

$65 million

KeyBanc served as buy-side advisor to Breen Color Concentrates

2/23/2016

(2/23/2016)

Arizona Polymer

Flooring, Inc.

Super-Krete

International, Inc. Arizona Polymer Flooring acquired Super-Krete International, the Spring Valley,

California-based manufacturer of high-quality concrete repair and restoration

materials

The acquisition strengthens Arizona Polymer Flooring’s position in the decorative

concrete market while also introducing its full line of products and systems to Super-

Krete’s existing customers

2/23/2016

(2/23/2016)

POLIFILM GmbH

(POLI-FILM

Verwaltungs

GmbH)

WMS-Folien GmbH POLIFILM acquired WMS-Folien, the German-based manufacturer of a range of

plastic packaging films including HDPE and LDPE film

The acquisition complements POLIFILM’s packing film portfolio geared towards PE

and protective films and expands its manufacturing capabilities

2/22/2016

(2/22/2016)

Reladyne, Inc.

(AEA Investors)

Industrial Action

Services, Inc.

(Kevin Sapp)

Reladyne acquired Industrial Action Services, the Huntington, Texas-based provider

of oil flushing and chemical cleaning services

The acquisition provides Reladyne with additional experience and varnish removal

services and an extensive inventory of prototype equipment and industry knowledge

and expertise, particularly within the petrochemical and refinery industries


Closed

(Announced)

Acquirer

(Parent)

Target

(Seller) Highlights

2/22/2016

(2/22/2016)

Polymer

Solutions Group

(Arsenal Capital

Partners)

Flow Polymers, LLC

(Geneva Glen

Capital, LLC)

Polymer Solutions Group acquired Flow Polymers, the Cleveland, Ohio-based

manufacturer of additives and dispersions for the rubber and plastic industries from

Geneva Glen Capital

The acquisition builds on Arsenal Capital Partners’ strategy to create a diversified

leader of high-value niche solutions serving customers in the polymers and plastics

industries

KeyBanc served as exclusive sell-side advisor to Flow Polymers

2/19/2016

(2/19/2016)

GFBiochemicals

Ltd.

Segetis, Inc.

(Malaysian

Technology

Development

Corporation)

GFBiochemicals acquired Segetis, the Golden Vallye, Minnesota-based technology-

enabled green chemistry company producing versatile chemical building blocks

The acquisition enables GFBiochemicals to accelerate its market entry for levulinic

acid and its derivatives

2/19/2016

(2/19/2016)

Highlander

Partners, L.P.

Fuerst Day Lawson

Holdings Limited Highlander Partners acquired Fuerst Day Lawson Holdings, the U.K.-based provider

of customized specialty ingredients to the food, beverage, fragrance and chemical

industries

The acquisition provides Fuerst Day Lawson Holdings with the financial, strategic and

operational support needed to expand upon its leading market position

2/19/2016

(2/19/2016)

Plaskolite, Inc.

(Charlesbank

Capital Partners)

Extruded Lighting

Sheet Business

(Rotuba Extruders,

Inc.)

Plaskolite acquired the Extruded Lighting Sheet Business of Rotuba Extruders

The acquisition broadens Plaskolite’s product line and reinforces its commitment to

being the leader in the lighting sheet industry

Pending

(2/17/2016)

Akzo Nobel N.V. Industrial Coatings

Business

(BASF SE)

Akzo Nobel agreed to acquire the Industrial Coatings Business of BASF for $530

million (1.6x 2015 sales)

The divestiture further strengthens BASF’s focus on its core automotive OEM and

automotive refinish coatings businesses, as well as the leading decorative paints

business with its band Suvinil® in Brazil

BASF’s Industrial Coatings Business generated 2015 sales of $ 335 million

2/17/2016

(2/17/2016)

Trive Capital;

TerraMar Capital

Partners

East West Copolymer Trive Capital and TerraMar Capital Partners acquired East West Copolymer, the

Batan Rouge, Louisiana-based manufacturer of synthetic rubber

The acquisition provides East West Copolymer with the partners necessary to

achieve meaningful growth and to position it for further expansion of production

capabilities

Pending

(2/15/2016)

Allnex Belgium

SA/NV

(Advent

International

Corporation)

Nuplex Industries

Limited Allnex Belgium agreed to acquire Nuplex Industries, the New Zealand-based

manufacturer of synthetic resins, for $798.3, in a take private transaction (0.9x 2015

sales and 8.7x 2015 EBITDA)

The $3.69 per share cash offer represents a 44% premium over Nuplex Industries’

closing price of $2.56 as of February 12, 2016

The acquisition would bring together two complementary businesses and create a

leading, global, independent coating resins producer

Nuplex Industries generated 2015 sales and EBITDA of $952.5 million and $95.2

million, respectively

8



Closed

(Announced)

Acquirer

(Parent)

Target

(Seller) Highlights

4/6/2016

(2/12/2016) Speyside Equity Opta Minerals Inc. Speyside Equity acquired Opta Minerals, the Canadian-based vertically integrated

provider of custom process solutions and industrial mineral products, for $43.4

million, in a take private transaction (0.4x 2015 sales and 6.6x 2015 EBITDA)

Pursuant to the agreement, all of the issued and outstanding shares of Opta, will be

converted, on a one-for-one basis, into redeemable shares of the amalgamated

corporation, which will then be immediately redeemed by Amalco in exchange for:

approximately $0.38 per share payable in cash or $0.25 per share payable in cash

plus an unsecured subordinated promissory note of Amalco in the principal amount of

approximately $0.12 per share

Opta Minerals generated 2015 sales and EBITDA of $113.8 million and $6.6 million,

respectively

Pending

(2/11/2016) M. Holland

Company

Able International

Corp; Tril Export

Corp.

M. Holland agreed to acquire Able International and Tril Export, the San Juan, Puerto

Rico-based resin distributors

The two business sell approximately 50 million pounds of thermoplastic resins each

year to more than 100 customers through distribution and agency relationships with

leading global resin producers

The acquisitions align with M. Holland’s international expansion strategy, which aims

to support its strategic supply partners with a strong and stable channel to Latin

American markets

2/11/2016

(2/11/2016)

Mantrose-Haeuser

Co., Inc.

(RPM International

Inc.)

Holton Food Products

Co., Inc. Mantrose-Haeuser Co. acquired Holton Food Products, the LaGrange, Illinois-based

supplier of food stabilizer and dry egg white products

The acquisition not only expands Mantrose-Haeuser’s business into the bakery

industry, but also increases its portfolio of products it can offer its customers in Food

& Confectionery

2/10/2016

(2/10/2016)

The Valspar

Corporation

Isva Vernici S.R.L. The Valspar Corporation acquired Isva Vernici, the Italian-based manufacturer of coil

coatings

The acquisition improve Valspar Coil’s global presence and extend its reach into

North Africa and the Gulf region

2/5/2016

(2/5/2016) Apcotex

Industries

Limited

OMNOVA Solutions

India Private Ltd.

(OMNOVA

Solutions Inc.)

Apcotex Industries acquired OMNOVA Solutions India, the Indian-based rubber

manufacturer for $5 million

The acquisition gives Apcotex an opportunity to grow in new adjacencies in emulsion

polymers, such as nitrile rubber, powder and PVC blends

OMNOVA Solutions India is the sole manufacturer of acrylonitrile butadiene rubber

(“NBR”) and one of the two manufacturers of high styrene rubber (“HSR”) in India

2/16/2016

(2/5/2016)

Olympus Partners G.E.T. Enterprises,

LLC

(ShoreView

Industries; Valesco

Industries, Inc.)

Olympus Partners acquired G.E.T. Enterprises, the Houston, Texas-based

manufacturer of plastic and melamine commercial food service products

The acquisition provides G.E.T. Enterprises with the partners necessary to help

support the growth of the Company through continued investment in the business

and through strategic acquisitions

9



Closed

(Announced)

Acquirer

(Parent)

Target

(Seller) Highlights

Pending

(2/3/2016)

China National

Chemical

Corporation

Syngenta AG China National Chemical Corporation (“ChemChina”) agreed to acquire Syngenta,

the Swiss-based manufacturer of pesticides and agrochemicals, for $45.1 billion

(3.4x 2015 sales and 16.1x 2015 EBITDA)

ChemChina offered Syngenta shareholders a cash offer of $465 per share plus a

closing bonus equivalent to $15 per share

The acquisition would help transform ChemChina into the world’s biggest supplier of

pesticides and agrochemicals

Syngenta generated 2015 sales and EBITDA of $13.4 billion and $2.8 billion,

respectively

2/3/2016

(2/3/2016)

PolyOne

Corporation

Compounding

Business

(Kraton Performance

Polymers, Inc.)

PolyOne acquired the Compounding Business of Kraton Performance Polymers for

$72 million (9.0x EBITDA)

The acquisition further expand PolyOne’s thermoplastic elastomer (“TPE”) business,

which includes its GLS product line

Kraton Performance Polymers’ Compounding Business generates annual EBITDA of

$8.0 million

2/1/2016

(2/1/2016)

Audax Group, Inc. Preferred

Compounding

Corporation

(Wingate Partners,

LLP)

Audax Group acquired Preferred Compounding, the Barberton, Ohio-based

developer and manufacturer of highly specialized, value-added elastomeric

compounds in North America from Wingate Partners

The acquisition provides Preferred Compounding the partners necessary to coninue

expanding the Company’s scale and capabilities through both organic and acquisition

growth

KeyBanc acted as the exclusives sell-side advisor to Preferred Compounding

2/1/2016

(2/1/2016)

Balchem Corp. Albion Laboratories,

Inc. Balchem Corp. acquired Albion Laboratories, the Clearfield, Utah-based

manufacturer and developer of nutritional and mineral products for animals, plants

and humans, for $111.5 milllion (2.1x 2015 sales and 10.7x 2015 EBITDA)

The acquisition expands Balchem’s science based human health and wellness

solutions and expand the combined Company’s product offerings in the nutritional

ingredient market by adding Albion’s premier branded innovated chelated minerals to

its portfolio

Albion Laboratories generated 2015 sales and EBITDA of $53.5 million and $10.4

million, respectively

2/1/2016

(2/1/2016)

Flint Group S.A.

(Goldman Sachs

Merchant

Banking Division;

Koch Industries)

Advanced Color

Systems, Inc. Flint Group acquired Advanced Color Systems, the Tulatin, Oregon-based

manufacturer of distributor of water-based inks

The acquisition strengthens Flint Group’s position and support to the Paper & Board

markets in North America

2/1/2016

(2/1/2016)

Royal Adhesives &

Sealants, LLC

(American

Securities)

Weld Mount Systems

(Associated

Technologies, LLC)

Royal Adhesives & Sealants acquired Weld Mount Systems, the Durham,

Connecticut-based manufacturer of adhesively-bonded fasteners

The acquisition adds a new dimension to Royal Adhesives & Sealants’ broad set of

structural adhesive solutions that it currently offers its global marine, defense,

transportation and assembly customers, who are rapidly adopting advanced

composites and engineered plastics into their product designs where traditional

mechanical fasteners cannot be used

10



11


Closed

(Announced)

Acquirer

(Parent)

Target

(Seller) Highlights

1/29/2016

(2/1/2016) Thermoform

Engineering

Quality

(ESCO

Technologies)

Plastique Group

Limited

Thermofrom Engineered Quality (“TEQ”) acquired Plastique, the U.K.-based

manufacturer of highly-technical thermoformed plastic and precision molded pulp

fiber packaging for the pharmaceutical and personal care markets

The acquisition better positions TEQ for significant, profitable growth by providing

immediate access to new customers and new geographies in both Europe and North

America for both its existing thermoformed packaging solutions as well as its new

pulp fiber packaging capabilities

Plastique generates annual sales of approximately $35 million

1/28/2016

(1/28/2016) Tech Air

(CI Capital

Partners)

Ravena Welding

Supply, Inc.;

Hereford Welding

Supply Inc.

Tech Air acquired Ravena Welding Supply, the Ravena, New York-based distributor

of welding suppliers and tools and Hereford Welding Supply, the Hereford, Texas-

based distributors of welding supplies and industrial gases

The acquisition of Ravena expands Tech Air’s presence in New York, a state in

which the Company has operated since 1935, while Hereford is the fourth acquisition

that Tech Air has completed in Texas during the last 18 months, creating a

substantial presence for the Company in that region

Tech Air has now completed 17 add-on acquisitions under CI Capital’s ownership

and now services its customers through 33 branch and fill locations

1/25/2016

(1/25/2016) National Molding,

Inc.

(Taglich Private

Equity)

Ven-Tel Plastics

Corp.

National Molding agreed to acquire Ven-Tel Plastics, the Largo, Florida-based

custom molder

The acquisition continues National Molding’s diversification strategy into other

injection molding markets

4/11/2016

(1/20/2016) Innovative

Chemical

Products Group

(Audax Private

Equity)

Pressurized

Polyurethane Foam

Adhesives

Business

(3M Company)

Innovative Chemical Products (“ICP”) acquired the Pressurized Polyurethane Foam

Adhesives Business of 3M

The acquisition provides ICP with unique formulation and dispensing technology in

the polyurethanes market

The Pressurized Polyurethane Foam Adhesives Business generates annual sales of

$20 million

1/19/2016

(1/20/2016) Takasago

International

Corporation

Centre Ingredient

Technology, Inc.

Takasago International acquired Centre Ingredient Technology, the Rockingham,

North Carolina-based manufacturer and wholesaler of natural flavors and fragrance

ingredients to the food, beverage and cosmetics industries

The acquisition enables Takasago International to leverage Centre Ingredient’s

technologies to deliver significant quality, cost and efficiency improvements to meet

the increasing demand for natural ingredients

1/19/2016

(1/19/2016) Coral Products

plc

Rotalac Plastics Ltd Coral Products acquired Rotalac Plastics, the U.K.-based provider of bespoke

thermoplastic extrusion and molding solutions

The acquisition is in line with the Coral Products’ strategic plan to broaden its product

range

1/19/2016

(1/19/2016)

Akzo Nobel N.V. EkO Peroxide LLC

(OCI Enterprises

Inc.)

Akzo Nobel acquired the outstanding shares of EkO Peroxide, the Columbus,

Mississippi-based joint venture with OCI Enterprises that operates a hydrogen

peroxide manufacturing facility with a 70,000 short ton per year capacity

The acquisition strengthens Akzo Nobel’s integrated platform for the production of

hydrogen peroxide and sodium chlorate at the Columbus, Mississippi facility


12



Closed

(Announced)

Acquirer

(Parent)

Target

(Seller) Highlights

1/18/2016

(1/18/2016) Maroon Group

LLC

(CI Capital

Partners)

CNX Distribution Maroon Group acquired CNX Distribution, the Hurt, Texas-based distributor of

specialty chemicals for the CASE, plastics, oil & gas and chemical processing

industries

The acquisition is part of Maroon Group’s multi-tiered growth strategy, providing an

anchor in this strategic region of the country

The acquisition is the Company’s third in the last 15 months

1/11/2016

(1/11/2016) Lifecycle

Biotechnologies,

LP

VI Plastics LLC Lifecycle Biotechnologies acquired VI Plastics, the San Antonio, Texas-based

manufacturer of large part blow molded plastics

The acquisition provides Lifecycle Biotechnologies the opportunity to own and control

parts utilized for its own packaging and will support the Company’s implementation of

quality systems deeper down its supply chain

Pending

(1/7/2016) Axens North

America, Inc.

Scutter Enterprises,

L.L.C.

Axens North America agreed to acquire Scutter Enterprises, the Chesterfield,

Missouri-based manufacturer of solid sulfur scavengers for gaseous and liquid

streams

The acquisition will reinforce Axens’ extensive adsorbent portfolio, adding new

adsorbents that offer economically competitive purification solutions to process

streams containing moderate amount of sulfur in applications such as landfill gas,

biogas, associated gas or CO2 treatment

1/7/2016

(1/7/2016) KISCO Ltd. Specialty Coating

Systems, Inc.

(Berwind

Corporation)

KISCO acquired Specialty Coating Systems, the Indianapolis, Indiana-based provider

of parylene conformal coating services

The acquisition further positions KISCO as the industry leader with enhanced

manufacturing capabilities around the world and unmatched research, development

and applications experience

12/31/2015

(1/7/2016) Pexco LLC

(Odyssey

Investment

Partners)

Scientific Plastics

Corporation

Pexco acquired Scientific Plastics, the St. Paul, Minnesota-based manufacturer of

injection-molded plastics

This acquisition markets the second in the last month for Pexco, with the Company

having acquired Precision Extrusion in December 2015

3/31/2016

(1/6/2016) Indorama

Ventures North

America LLC

(Indorama

Ventures Public

Company Ltd.)

Decatur, Alabama

Petrochemical

Complex

(BP p.l.c.)

Indorama Ventures North America acquired the Decatur, Alabama Petrochemical

Complex of BP

The divestiture enables BP to focus investment on its world-class PTA production

facility in Cooper, River SC, and a key PTA feedstock producer in Texas City, Texas,

as well as to maintain a strong position in the important U.S. petrochemicals industry

1/6/2016

(1/6/2016) Precision

Coating

Company, Inc.

Boyd Coatings

Research Co., Inc.

Precision Coating Company acquired Boyd Coatings Research, the Hudson,

Massachusetts-based manufacturer of high-performance coatings

The acquisition creates a fluoropolymer coatings application powerhouse that

provides unique global medical device manufacturing capabilities

1/5/2016

(1/5/2016) Hexcel Corp. Formax (UK)

Limited

Hexcel acquired the remaining 50% interest in Formax, the U.K.-based manufacturer

of composite reinforcements

The acquisition of the remaining interest in Formax allows Hexcel to further advance

dry reinforcements technology for future aerospace applications and provide scale for

growing industrial markets

13



Closed

(Announced)

Acquirer

(Parent)

Target

(Seller) Highlights

1/4/2016

(1/4/2016) Material Sciences

Corporation

(Insight Equity)

Continuous Colour

Coat (d/b/a Metal

Koting)

Material Sciences acquired Continuous Colour Coat (d/b/a Metal Koting), the

Canadian-based provider of galvanized painted and printed steel and aluminum coils

The acquisition complements the capabilities Material Sciences offers at its other four

operating locations in Ohio, Indiana and Illinois and broadens its geographic reach

The acquisition represents the fourth add-on for Material Sciences during Insight

Equity’s ownership

1/4/2016

(1/4/2016) Royal Adhesives

& Sealants, LLC

(American

Securities)

Adhesive Systems,

Inc.

(Associated

Technologies LLC)

Royal Adhesives & Sealants acquired Adhesive Systems, the Frankfort, Illinois-based

manufacturer of cyanoacrylate, methyl methacrylate, epoxy and anaerobic adhesives

The acquisition provides Adhesive Systems with partners necessary to help

accelerate its growth strategy through addition of other adhesive technologies to its

product line and through supporting its geographic expansion plans

12/31/2015

(1/4/2016) nexAir LLC 25 Praxair

Distribution

Branches

(Praxair, Inc.)

nexAir acquired 25 Praxair Distribution Branches

The acquisition strengthens nexAir’s footprint and offer customers in the strategic

Florida and Georgia markets access to the Company’s industrial and specialty gases,

welding equipment and supplies, as well as its dedicated sales team

nexAir now has 67 branches across Alabama, Arkansas, Georgia, Florida, Louisiana,

Mississippi and Tennessee

14

Source: Capital IQ, Reuters, SEC Filings

Specialty Chemicals Public Trading Statistics (Through March 31, 2016)

$ in millions, except per share data

Stock Market Stock Performance (% Change) Enterprise LTM EBITDA EV / LTM Consensus EBITDA EV / EBITDA

Company Price Cap. 1 month 3 months 1 year Value Revenue EBITDA Margin EBITDA 2016P 2017P 2016P 2017P

Axalta Coating Systems, Ltd. AXTA $29.20 $6,964 12.5% 9.6% 5.7% $9,990 $4,087 $842 20.6% 11.9x $906 $982 11.0x 10.2x

Chase Corporation CCF $52.59 $485 11.8% 29.1% 20.3% $484 $240 $57 23.7% 8.5x NA NA NA NA

GCP Applied Technologies Inc. GCP $19.94 $1,408 12.5% NA NA $2,131 $1,419 $229 16.2% 9.3x $256 $264 8.3x 8.1x

H.B. Fuller Company FUL $42.45 $2,117 10.3% 16.4% (1.0%) $2,726 $2,087 $262 12.6% 10.4x $301 $313 9.1x 8.7x

PPG Industries, Inc. PPG $111.49 $29,742 15.5% 12.8% (1.1%) $32,694 $15,330 $2,574 16.8% 12.7x $2,860 $3,028 11.4x 10.8x

Quaker Chemical Corporation KWR $84.86 $1,123 9.1% 9.8% (0.9%) $1,132 $738 $101 13.7% 11.2x $107 $115 10.6x 9.9x

RPM International Inc. RPM $47.33 $6,287 15.9% 7.4% (1.4%) $8,033 $4,718 $622 13.2% 12.9x $703 $757 11.4x 10.6x

Sherwin-Williams Company SHW $284.67 $26,247 5.2% 9.7% 0.1% $28,004 $11,339 $1,813 16.0% 15.4x $1,961 $2,117 14.3x 13.2x

Valspar Corporation VAL $107.02 $8,471 36.8% 29.0% 27.4% $10,366 $4,264 $692 16.2% 15.0x $762 $807 13.6x 12.9x

Average 14.4% 15.5% 6.1% $10,618 $4,913 $799 16.3% 11.9x 11.2x 10.5x

Median 12.5% 11.3% (0.4%) $8,033 $4,087 $622 15.2% 11.9x 11.2x 10.4x

A. Schulman, Inc. SHLM $27.22 $797 10.2% (11.2%) (43.5%) $1,867 $2,426 $252 10.4% 7.4x $318 $289 5.9x 6.5x

Calumet Specialty Products Partners CLMT $11.75 $892 21.0% (41.0%) (51.1%) $2,687 $4,213 $305 7.2% 8.8x $347 $366 7.7x 7.3x

Ferro Corporation FOE $11.87 $987 19.5% 6.7% (5.4%) $1,410 $1,075 $155 14.4% 9.1x $175 $193 8.0x 7.3x

Hexcel Corporation HXL $43.71 $4,060 5.8% (5.9%) (15.0%) $4,584 $1,861 $409 22.0% 11.2x $462 $520 9.9x 8.8x

Innospec Inc. IOSP $43.36 $1,063 (0.1%) (20.2%) (6.5%) $1,057 $1,012 $151 14.9% 7.0x $123 $122 8.6x 8.7x

Kraton Performance Polymers, Inc. KRA $17.30 $530 0.8% 4.2% (14.4%) $2,287 $1,976 $381 19.3% 6.0x $381 $399 6.0x 5.7x

NewMarket Corporation NEU $396.26 $4,696 8.5% 4.1% (17.1%) $5,116 $2,141 $399 18.6% 12.8x $379 $383 13.5x 13.4x

OMNOVA Solutions Inc. OMN $5.56 $249 6.1% (9.3%) (34.8%) $561 $838 $79 9.4% 7.1x $94 $103 5.9x 5.5x

PolyOne Corporation POL $30.25 $2,581 12.4% (4.8%) (19.0%) $3,448 $3,378 $418 12.4% 8.3x $435 $466 7.9x 7.4x

Stepan Company SCL $55.29 $1,233 11.3% 11.3% 32.7% $1,391 $1,776 $187 10.5% 7.4x $207 $226 6.7x 6.2x

Tredegar Corp. TG $15.72 $512 14.5% 15.4% (21.8%) $572 $896 $87 9.7% 6.5x $73 $81 7.8x 7.1x

Average 10.0% (4.6%) (17.8%) $2,271 $1,963 $257 13.1% 8.3x 8.0x 7.6x

Median 10.2% (4.8%) (17.1%) $1,867 $1,861 $252 13.5% 7.4x 7.8x 7.3x

Albemarle Corporation ALB $63.93 $7,179 13.7% 14.1% 21.0% $11,675 $3,914 $959 24.5% 12.2x $931 $995 12.5x 11.7x

Ashland Inc. ASH $109.96 $6,952 15.4% 7.1% (13.6%) $9,950 $5,159 $1,103 21.4% 9.0x $1,117 $1,178 8.9x 8.4x

Axiall Corporation AXLL $21.84 $1,542 9.7% 41.8% (53.5%) $2,805 $3,361 $337 10.0% 8.3x $327 $386 8.6x 7.3x

Cabot Corporation CBT $48.33 $3,014 8.5% 18.2% 7.4% $4,031 $2,662 $434 16.3% 9.3x $521 $564 7.7x 7.1x

Celanese Corporation CE $65.50 $9,655 8.6% (2.7%) 17.3% $12,097 $5,674 $1,515 26.7% 8.0x $1,532 $1,573 7.9x 7.7x

Chemtura Corporation CHMT $26.40 $1,745 4.6% (3.2%) (3.3%) $1,940 $1,745 $262 15.0% 7.4x $282 $310 6.9x 6.3x

Eastman Chemical Co. EMN $72.23 $10,686 12.6% 7.0% 4.3% $17,542 $9,648 $2,283 23.7% 7.7x $2,213 $2,315 7.9x 7.6x

FMC Corp. FMC $40.37 $5,399 7.3% 3.2% (29.5%) $7,546 $3,277 $635 19.4% 11.9x $671 $764 11.2x 9.9x

Huntsman Corporation HUN $13.30 $3,168 22.5% 17.0% (40.0%) $7,894 $10,299 $1,025 10.0% 7.7x $1,181 $1,285 6.7x 6.1x

KMG Chemicals Inc. KMG $23.07 $271 7.6% 0.2% (13.7%) $309 $297 $41 13.9% 7.5x $45 $49 6.8x 6.2x

Koppers Holdings Inc. KOP $22.47 $462 28.1% 23.1% 14.2% $1,181 $1,627 $137 8.4% 8.6x $159 $170 7.4x 6.9x

LSB Industries Inc. LXU $12.75 $299 118.3% 75.9% (69.2%) $882 $712 $37 5.1% NM $134 $207 6.6x 4.3x

Minerals Technologies Inc. MTX $56.85 $1,982 11.9% 24.0% (22.2%) $3,042 $1,798 $356 19.8% 8.6x $367 $386 8.3x 7.9x

Olin Corp. OLN $17.37 $2,868 14.6% 0.6% (45.8%) $6,357 $2,854 $950 33.3% 6.7x $957 $1,066 6.6x 6.0x

Orion Engineered Carbons SA OEC $14.12 $838 9.9% 12.1% (21.6%) $1,475 $1,112 $229 20.6% 6.5x $244 $256 6.1x 5.8x

Platform Specialty Products Corporation PAH $8.60 $1,974 21.3% (33.0%) (66.5%) $7,598 $2,542 $572 22.5% 13.3x $739 $814 10.3x 9.3x

Westlake Chemical Corporation WLK $46.30 $6,029 7.4% (14.8%) (35.6%) $5,913 $4,463 $1,179 26.4% 5.0x $1,047 $1,076 5.6x 5.5x

W.R. Grace & Co. GRA $71.18 $5,028 3.5% (28.5%) (28.0%) $6,185 $3,052 $525 17.2% 11.8x $510 $545 12.1x 11.4x

Average 18.1% 9.0% (21.0%) $6,023 $3,566 $699 19.6% 8.8x 8.2x 7.5x

Median 10.9% 7.0% (21.9%) $6,049 $2,953 $549 18.6% 8.3x 7.8x 7.2x

Albany Molecular Research Inc. AMRI $15.29 $529 3.7% (23.0%) (13.1%) $869 $402 $85 21.2% 10.2x $94 $100 9.2x 8.7x

American Vanguard Corp. AVD $15.78 $461 25.1% 12.6% 48.6% $524 $289 $33 11.5% 15.7x $41 $54 12.8x 9.6x

Balchem Corp. BCPC $62.02 $1,956 (2.0%) 2.0% 12.0% $2,169 $552 $134 24.2% 16.2x $163 $166 13.3x 13.1x

Cambrex Corporation CBM $44.00 $1,400 14.1% (6.6%) 11.0% $1,386 $432 $129 29.9% 10.7x $144 $163 9.6x 8.5x

Innophos Holdings Inc. IPHS $30.91 $596 6.7% 6.7% (45.2%) $791 $789 $110 14.0% 7.2x $128 $131 6.2x 6.0x

International Flavors & Fragrances Inc. IFF $113.77 $9,066 10.1% (4.9%) (3.1%) $9,958 $3,023 $690 22.8% 14.4x $711 $750 14.0x 13.3x

Sensient Technologies Corp. SXT $63.46 $2,850 10.4% 1.0% (7.9%) $3,472 $1,376 $258 18.7% 13.5x $258 $292 13.5x 11.9x

Average 9.7% (1.7%) 0.3% $2,738 $981 $206 21.0% 12.6x 11.2x 10.2x

Median 10.1% 1.0% (3.1%) $1,386 $552 $129 23.4% 13.5x 12.8x 9.6x

Overall Average 14.1% 5.1% (11.9%) 9.9x 9.2x 8.5x

Overall Median 10.4% 6.7% (10.5%) 9.1x 8.4x 8.0x

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15

Source: Capital IQ, Standard & Poor’s, SEC Filings

Specialty Chemicals Public Trading Statistics (Through March 31, 2016)

$ in millions

Total Net Total Debt / Net Debt / Total Debt / LTM EBITDA / LT S&P

Company Ticker Debt Debt LTM EBITDA LTM EBITDA LTM EBITDA Capital Interest Rating

Axalta Coating Systems, Ltd. AXTA $3,443 $2,958 $842 4.1x 3.5x 75.1% 4.3x -

Chase Corporation CCF $48 ($4) $57 0.8x NM 23.0% NM -

GCP Applied Technologies Inc. GCP $818 $719 $229 3.6x 3.1x 63.3% NM BB-

H.B. Fuller Company FUL $723 $597 $262 2.8x 2.3x 44.8% 10.4x BBB

PPG Industries, Inc. PPG $4,325 $2,866 $2,574 1.7x 1.1x 46.0% 20.4x A-

Quaker Chemical Corporation KWR $82 $1 $101 0.8x NM 17.7% NM -

RPM International Inc. RPM $2,086 $1,801 $622 3.4x 2.9x 62.7% 6.5x BBB

Sherwin-Williams Company SHW $1,963 $1,757 $1,813 1.1x 1.0x 69.3% 29.3x A

Valspar Corporation VAL $2,047 $1,895 $692 3.0x 2.7x 70.5% 7.9x BBB

Average 2.3x 2.4x 52.5% 13.1x

Median 2.8x 2.7x 62.7% 9.2x

A. Schulman, Inc. SHLM $1,024 $977 $252 4.1x 3.9x 64.3% 5.6x BB-

Calumet Specialty Products Partners CLMT $1,773 $1,768 $305 5.8x 5.8x 74.6% 2.9x B

Ferro Corporation FOE $474 $415 $155 3.1x 2.7x 59.4% 10.2x BB-

Hexcel Corporation HXL $577 $525 $409 1.4x 1.3x 32.8% 28.8x BBB-

Innospec Inc. IOSP $136 ($6) $151 0.9x NM 18.4% NM -

Kraton Performance Polymers, Inc. KRA $1,775 $1,757 $381 4.7x 4.6x 52.2% 4.8x B

NewMarket Corporation NEU $514 $421 $399 1.3x 1.1x 57.0% 22.3x BBB+

OMNOVA Solutions Inc. OMN $356 $313 $79 4.5x 4.0x 75.6% 2.8x B

PolyOne Corporation POL $1,147 $867 $418 2.7x 2.1x 61.9% 6.4x BB

Stepan Company SCL $333 $156 $187 1.8x 0.8x 37.3% 12.7x -

Tredegar Corp. TG $104 $60 $87 1.2x 0.7x 27.6% 24.9x -

Average 2.9x 2.7x 51.0% 12.1x

Median 2.7x 2.4x 57.0% 8.3x

Albemarle Corporation ALB $3,852 $3,638 $959 4.0x 3.8x 53.1% 7.5x BBB-

Ashland Inc. ASH $4,037 $2,998 $1,103 3.7x 2.7x 61.3% 6.6x BB

Axiall Corporation AXLL $1,447 $1,189 $337 4.3x 3.5x 46.7% 4.3x BB

Cabot Corporation CBT $1,005 $921 $434 2.3x 2.1x 44.5% 8.2x BBB

Celanese Corporation CE $2,981 $1,991 $1,515 2.0x 1.3x 51.3% 12.7x -

Chemtura Corporation CHMT $517 $194 $262 2.0x 0.7x 34.0% 8.7x BB-

Eastman Chemical Co. EMN $7,069 $6,776 $2,283 3.1x 3.0x 63.7% 8.2x BBB

FMC Corp. FMC $2,183 $2,105 $635 3.4x 3.3x 53.4% 7.8x BBB

Huntsman Corporation HUN $4,796 $4,539 $1,025 4.7x 4.4x 74.6% 5.0x BB-

KMG Chemicals Inc. KMG $47 $38 $41 1.1x 0.9x 26.4% NM -

Koppers Holdings Inc. KOP $735 $713 $137 5.4x 5.2x NM 2.7x B

LSB Industries Inc. LXU $530 $402 $37 NM NM 46.9% 4.9x B-

Minerals Technologies Inc. MTX $1,265 $1,033 $356 3.6x 2.9x 57.4% 5.7x BB-

Olin Corp. OLN $3,882 $3,489 $950 4.1x 3.7x 61.6% 9.8x BB+

Orion Engineered Carbons SA OEC $711 $637 $229 3.1x 2.8x NM 5.1x BB-

Platform Specialty Products Corporation PAH $5,241 $4,809 $572 9.2x 8.4x 64.2% 2.6x BB-

Westlake Chemical Corporation WLK $770 ($412) $1,179 0.7x NM 17.8% NM BBB+

W.R. Grace & Co. GRA $1,483 $1,153 $525 2.8x 2.2x NM 5.2x BB+

Average 4.1x 3.6x 50.5% 6.6x

Median 3.5x 3.0x 53.1% 6.1x

Albany Molecular Research Inc. AMRI $389 $340 $85 4.6x 4.0x 57.5% 4.4x B

American Vanguard Corp. AVD $68 $63 $33 2.1x 1.9x 20.3% 13.0x -

Balchem Corp. BCPC $298 $213 $134 2.2x 1.6x 39.1% 20.3x -

Cambrex Corporation CBM $30 ($14) $129 0.2x NM 8.8% NM -

Innophos Holdings Inc. IPHS $213 $195 $110 1.9x 1.8x 39.0% 14.6x -

International Flavors & Fragrances Inc. IFF $1,070 $887 $690 1.6x 1.3x 40.2% 15.0x BBB+

Sensient Technologies Corp. SXT $635 $623 $258 2.5x 2.4x 42.9% 15.2x -

Average 2.1x 2.2x 35.4% 13.7x

Median 2.1x 1.8x 39.1% 14.8x

Overall Average 3.1x 3.0x 48.5% 10.2x

Overall Median 2.8x 2.7x 51.8% 7.9x

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16

5-Year Index Performance

KBCM’s Specialty Chemicals Index rose 6.7% for the quarter ended Mar 31st, versus a 0.8% increase in the S&P 500

5-Year Enterprise Value / LTM EBITDA Valuations

KBCM Specialty Chemicals Index valuations fell to 9.1x EV / LTM EBITDA as of March 31st

Source: Capital IQ, SEC Filings

Note: KBCM Specialty Chemicals Index includes: ALB, AMRI, ASH, AVD, AXLL, AXTA, BCPC, CBM, CBT, CCF, CE, CHMT, CLMT, EMN, FMC, FOE, FUL,

GCP, GRA, HUN, HXL, IFF, IOSP, IPHS, KMG, KOP, KRA, KWR, LXU, MTX, NEU, OEC, OLN, OMN, PAH, POL, PPG, RPM, SCL, SHLM, SHW, SXT, TG,

VAL, WLK

69.0%

55.4%

(40%)

(20%)

0%

20%

40%

60%

80%

100%

120%

Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16

Average: 9.3x

Specialty Chemicals Valuations (Through March 31, 2016)

KBCM Specialty

Chemicals IndexS&P 500

Last 12 Months (10.5%) (0.4%)

Last 3 Months 6.7% 0.8%

Last 1 Month 10.4% 6.6%

17

For additional information on KeyBanc Capital Markets’ Specialty Chemicals Practice, please contact any of the individuals listed below

Key Tower, Floor 6 127 Public Square Cleveland, OH 44114

Mario Toukan

Managing Director

Head of Chemicals Practice

216.689.4663

[email protected]

Ben Whiting

Director

Chemicals Practice

216.689.4120

[email protected]

Alain Harfouche

Vice President

Chemicals Practice

216.689.3995

[email protected]

Dan Lory

Associate

Chemicals Practice

216.689.3096

[email protected]

SPECIALTY CHEMICALS TEAM CONTACTS

$555,000,000

Senior Secured Credit Facilities

December 2014

has acquired

Joint Lead Arranger &

Joint Bookrunner

January 2015

Sell-Side Advisor

has been acquired by

a portfolio company of

Investment Partners

$112,000,000 Transaction Value

December 2014

Sell-Side Advisor


Polymer Additives Division


June 2015

Sell-Side Advisor



January 2015

Co-Manager

$1,100,000,000

€350,000,000

Senior Notes


June 2015

Buy-Side Advisor


$520,000,000

Senior Unsecured Credit Facilities

November 2015


Joint Bookrunner

June 2015

Buy-Side Advisor

has acquired


November 2015

Buy-Side Advisor

has acquired

December 2015

Sell-Side Advisor



October 2014


Joint Bookrunner

has acquired

$430,000,000


September 2014

Co-Manager

$1,000,000,000

Senior Notes

August 2014

Sell-Side Advisor



$1,050,000,000 Transaction Value

$855,000,000


August 2014

has acquired

Joint Lead Arranger,

Joint Bookrunner &

Co-Syndication Agent

December 2015


$95,500,000


Sole Lead Arranger,

Sole Bookrunner &

Administrative Agent

Select KeyBanc Capital Markets Transaction Experience

January 2016

has spun-off from

$525,000,000

Senior Unsecured Notes

February 2016



February 2016



February 2016


has acquired

Co-Manager Sell-Side Advisor Sell-Side Advisor Buy-Side Advisor

Polymer Solutions Group


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