Specialty Chemicals Giant Expands Reach with Strategic Buyout
Expansion Strategy Element Solutions Inc. is set to grow its business by acquiring EFC Gases & Advanced Materials. This deal is expected to close by the end of 2025, pending regulatory approvals.
About EFC EFC specializes in high-purity gases and advanced materials, serving industries like:
- Semiconductors
- Aerospace
- Electrical Infrastructure
Their products are renowned for their quality and purity, achieved through strict global sourcing and advanced metrology processes.
Financial Details
- The acquisition is valued at roughly 12 times EFC's projected 2026 adjusted EBITDA.
- EFC has seen impressive growth, with revenue increasing by over 15% annually since 2009.
- Semiconductor product qualifications have surged by over 40% since 2023.
Strategic Alignment This buyout aligns with Element Solutions' strategy to expand into fast-growing markets.
CEO Insights
- Benjamin Gliklich, CEO of Element Solutions, praised EFC's specialized products and customer-centric approach.
- He highlighted the company's strong pipeline and potential for substantial earnings growth.
- 40% of EFC's sales come from semiconductors, and 30% from satellite and space applications, diversifying Element Solutions' portfolio.
Pavel Perlov, CEO of EFC, expressed excitement about joining Element Solutions, emphasizing the shared vision for growth and innovation.
Financial Impact
- EFC is expected to contribute about $30 million to Element Solutions' adjusted EBITDA in 2026.
- The deal will be funded through existing cash and additional debt.
- Element Solutions also plans to acquire Micromax from Celanese Corporation, expected to add $40 million to its adjusted EBITDA.
- Together, these acquisitions are projected to boost Element Solutions' earnings per share by over 7% in 2026.
About Element Solutions Inc. Element Solutions Inc. is a global leader in specialty chemical technology. Their products enhance the performance of everyday items, supporting industries like:
- Consumer Electronics
- Automotive Systems
- Offshore Energy
The company aims to leverage these acquisitions to drive innovation and growth.
