Platform Specialty acquire Alent $2.3 billion

Platform Specialty to acquire Alent for $2.3 billion

10:31 AM, 13th July 2015
Platform Specialty to acquire Alent for $2.3 billion

MIAMI, US: Platform Specialty Products Corporation and Alent Plc said that Platform has offered to acquire all of the outstanding shares of Alert in a cash and stock transaction, including net debt for approximately $2.3 billion.

The transaction is expected to close in late 2015 or early 2016. Following closing of the transaction, Platform will remain a New York stock exchange listed company domiciled in the US.

Alent is a supplier of specialty chemicals and engineered materials used primarily in electronics, automotive and industrial applications. Alent has two business segments: Enthone - surface chemistries business; and Alpha - assembly materials business.

Alent is a highly attractive business with compelling growth prospects and a proven financial track record. It will improve the geographic range and product capabilities in surface treatment and expand Platform’s product offerings. Platform believes that the combined group will be able to achieve annual pre-tax cost synergies of $50 million which are expected to be phased in over the three years after the transaction is completed, it said.

For each Alent share, Alent shareholders will receive 503 pence in cash. The transaction values Alent’s entire issued and to be issued share capital at $2,096 million (£1,351 million). This represents a premium of approximately 49 percent over Alent’s closing price of 337.7 pence per share as of 10 July. 

“The proposed acquisition of Alent marks a further step in the Platform strategy of building a portfolio of best-in-class ‘asset-lite, high-touch’ businesses in the specialty chemicals industry. Alent is a terrific fit and rebalances the portfolio as we continue to build the company,” said Martin Franklin, founder and chairman, Platform.

“Alent is a strong complement to Platform’s founding asset MacDermid. Alent will enhance the breadth, depth and overall footprint of Platform’s performance applications segment. Alent’s Enthone division represents a perfect partner as we continue to grow and build MacDermid whilst Alent’s Alpha division adds several new high return positions to our portfolio,” said Daniel Leever, chief executive officer, Platform.

“Since the successful demerger of Alent at the end of 2012, our market leading businesses have outperformed their end-markets and delivered increasing returns. Our growth strategy and investments in facilities and R&D positions Alent to deliver long-term growth and sustainable margin improvement,” said Andrew Heath, CEO, Alent.

Alent will not pay an interim dividend for the six months ended 30 June, Platform said.

Credit Suisse is acting as financial adviser and is providing committed financing to Platform, with Slaughter and May acting as lead UK legal adviser and Paul, Weiss, Rifkind, Wharton & Garrison LLP acting as US legal adviser.

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