DKSH to Acquire US Distributor Terra Firma
Swiss distributor DKSH is poised to acquire North American specialty chemicals distributor Terra Firma, expanding the platform of its Performance Materials business unit to the US and Canada.
Under the deal it called an important step in in its strategy to build a global distribution platform, the Swiss distributor said it will acquire at least 80% of Terra Firma’ shares, with the remainder continuing to be held by the company’s existing management team.
The transaction that values the Baltimore, Maryland-based US company at $360 million will be financed via debt and cash and is expected to be EPS-accretive. Closing is slated for late 2022.
Across the continent, Terra Firma’s clients are active in the core product segments of Coatings, Adhesives, Sealants and Elastomers and the markets for plastics and construction, agrochemicals, health and nutrition, in addition to personal care.
DKSH said the addition of a strong player in the North American industrial specialty chemicals distribution sector will bolster its international presence in particular as Terra Firma’s product slate is complementary to its own specialty industrial business. It will also provide a strong base to expand further into food, pharma, and personal care in the region.
With offices in Los Angeles, Dallas, Baltimore, and Toronto, Terra Firma currently employs around 100 people. The company expects net sales of around $240 million in 2022.
Author: Dede Williams, Freelance Jornalist
