Elementis announces Personal Care acquisition

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[{"type":"text","content":"\n \n10 February 2017\n\nElementis significantly increases the scale of its personal care business with US$360 million acquisition of SummitReheis\n\nAcquisition adds a high quality business with significant potential for further growth in the attractive personal care segment\n\nElementis plc (“Elementis” or the “Group”) today announces that it has entered into an agreement to acquire SRLH Holdings, Inc. (“SummitReheis”) from an affiliate of One Rock Capital Partners, LLC (“One Rock”) for an enterprise value of US$360 million, (the “Acquisition”). SummitReheis will become part of an enlarged personal care business within Elementis. For the year ended 31 December 2016, SummitReheis is expected to report revenue of US$134 million and underlying EBITDA of approximately US$28 million. The acquisition enterprise value is equivalent to approximately 11.8x SummitReheis expected underlying EBITDA for 2016 (including run rate cost synergies).\n\nSummitReheis is a high quality, high margin specialty chemicals platform that produces a range of critical active ingredients and materials tailored for use in personal care, pharmaceutical and dental products. SummitReheis' anti-perspirant actives business (more than 60 per cent. of its sales) is the global leader in the manufacture and sale of active ingredients for anti-perspirants and has long standing relationships with key consumer product companies across the Americas, Europe and Asia.\n\nTransaction highlights:\n\n\n\nAcquisition creates an enlarged personal care business with annual sales of approximately US$200 million, significantly increasing the Group’s presence in this important end market\n\n\n\nEnhanced growth potential driven by the combination of complementary products, customers and a broader geographic presence which together offer cross-selling opportunities\n\n\n\nCritical components for the US$13 billion anti-perspirant market with growth driven by increasing penetration in emerging markets and demand for premium and higher efficacy products in established geographies\n\n\n\nAcquisition will be funded from cash resources and new debt facilities of US$475 million which will be supported by the cash generation characteristics of the enlarged Group\n\n\n\nExpected to deliver material earnings accretion and substantial free cash flow accretion in the curre...

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