Solenis, a prominent manufacturer of specialty chemicals for water-intensive industries, has successfully concluded its acquisition of Diversey Holdings, Ltd., in a significant all-cash transaction valued at $4.6 billion. The acquisition brings together two global leaders in water management, cleaning, and hygiene, positioning Solenis for enhanced growth and diversification in its product offerings.
With the completion of this acquisition, Solenis now boasts a presence in over 130 countries, operates through 71 manufacturing locations, and employs a workforce of 15,000 individuals. This strategic move follows Solenis' own acquisition by Platinum Equity, a leading investment firm, in 2021. As a result of the transaction, Bain Capital, the majority shareholder of Diversey, has gained a minority investment in Solenis.
The merger between Solenis and Diversey represents a significant milestone for both companies. By combining their strengths, they have created a more formidable entity capable of providing comprehensive solutions that address global water management, cleaning, and hygiene challenges.
Solenis CEO John Panichella expressed his enthusiasm about the merger, stating, "This merger makes Solenis a more diversified company with significantly increased scale, a broader global reach, and the ability to offer a 'one-stop shop' suite of solutions that meet customer demand."
The integration of Diversey's portfolio of cleaning and hygiene products and technologies into Solenis' existing offerings presents valuable cross-selling opportunities. This synergy enables Solenis to become an even better partner to its clients; as Panichella explained, "We now have greatly enhanced capabilities to help our customers tackle critical sustainability challenges, reduce their environmental impact, and help create a cleaner, safer world."
Platinum Equity, the driving force behind Solenis' acquisition, also recognizes the immense potential of this merger. Co-President Jacob Kotzubei highlighted the transformative nature of the collaboration, emphasizing that "By joining forces, they're better positioned to accelerate the pace of progress across a wider range of high-growth end markets." The combined expertise and resources of Solenis and Diversey will undoubtedly propel innovation and drive advancements in critical industries.
Additionally, thanks to Platinum Equity's support, the acquisition is in line with Solenis' ambitious growth trajectory. Nathan Eldridge, Managing Director at Platinum Equity, affirmed the company's commitment to creating a larger, more expansive platform for Solenis. Eldridge also stated, "We are excited to create a larger, more expansive platform that will enable Solenis to have even more opportunities to grow both organically and through additional acquisitions in core and adjacent markets going forward."
With Solenis' expanded capabilities and global footprint, the company is well-positioned to address evolving customer needs and market demands. Through their strong client partnerships, cutting-edge innovation, and value-added services, Solenis aims to continue its aggressive growth and solidify its position as a leader in water management, cleaning, and hygiene solutions.
As Solenis and Diversey embark on this new chapter of collaboration, the merger represents a significant milestone in their respective legacies. Both companies, with their long-standing histories of developing solutions for global challenges, are now poised to make an even greater impact in building a sustainable and cleaner world for future generations.