Solenis, a global producer of specialty chemicals, has been acquired by Platinum Equity from Clayton, Dubilier & Rice, and German chemical giant BASF in a transaction worth $5.25 billion.
Both Clayton and BASF have exited Solenis, which is based north of Wilmington.
As part of the acquisition, Solenis merged with Sigura Water, an existing Platinum Equity portfolio company, for a total combined value of approximately $6.5 billion. The combined company generates approximately $3.5 billion of revenue.
Solenis supplies specialty chemicals and services for process, functional, and water treatment applications in two primary segments: Consumer Solutions (consumer and food packaging, graphic paper, and tissue, and towel markets) and Industrial Solutions (core water treatment and wastewater markets).
With the merger, Solenis is expanding its portfolio to include the residential and commercial pool water and spa treatment markets of Sigura. The global footprint of Solenis, now spans 120 countries, 47 manufacturing facilities, and more than 6,000 employees.
Solenis CEO, John Panichella, will lead the combined company following the transition and integration. Robert Baird, CEO of Sigura, remains as president of the new Pool Solutions division at Solenis.
“This exciting new transition to Platinum Equity helps us expand the Solenis legacy started more than a century ago,” said Panichella. “With increasing demand for a world that’s safer, healthier, and more sustainable, Solenis is well-positioned to continue driving sustainable solutions — and delivering measurable results — for our customers.”
“The addition of Sigura positions Solenis as a more diversified water treatment leader with increased profitability and attractive growth opportunities,” added Panichella. “Sigura’s industry-leading position in the pool solutions market and innovation-focused team complement our current offerings. As we welcome Robert and his team to Solenis, I’m excited for the opportunity to move forward together, enhancing our customers’ profitability, sustainability, and deployment of healthier water treatment options.”
Solenis came out of Wilmington-based Hercules Incorporated, which had expanded its water chemicals business with the costly purchase of Betz-Dearborn and retained a profitable paper chemical business that was facing challenges that include digital j
Ashland then acquired Hercules which in turn, sold a part of Hercules to Clayton, Dubilier & Rice, with the business renamed Solenis.
With the recent tansactions, the annual sales of Solenis now match those of Ashland. As it continued to restructure, Ashland moved its corporate offices from Kentucky to Wilmington.