IMCD Group B.V. (Rotterdam, The Netherlands; www.imcdgroup.com) announced that it will acquire 80% of The M.F. Cachat Company, including 100% of MJS Sales, Inc. MF Cachat fits well with the IMCD business model and strategy and provides a significant platform for further growth in the U.S., which is a growing specialty chemicals region.
Initially, IMCD will acquire 80% of the total share capital from the existing MF Cachat management who will continue to lead the company. The remaining 20%, which is also owned by management, will be acquired at the latest in 2017.
MF Cachat is a leading specialty chemicals distributor in the U.S. with a focus on coatings, construction, plastics, advanced materials and food. With its head office near Cleveland, Ohio, MF Cachat is active in the Midwest, Central, Eastern and Southern regions of the U.S. and represents leading global chemical suppliers in more than 30 states. In 2014, MF Cachat generated revenue of $300 million (including $3 million of MJS Sales) and has approximately 90 employees.
Piet van der Slikke, CEO of IMCD, commented: “This is a very important next step in the strategy of IMCD to become a leading specialty chemicals distributor in key markets. A position in the US will give us the opportunity not only to grow in this huge market, but also to expand our relations with existing suppliers and customers.
John Mastrantoni, president and CEO of MF Cachat, adds:”MF Cachat and IMCD have similar strategies and cultures and we look forward to working together to expand our business in the U.S. further.”
The acquisition will be paid from available cash, existing facilities and an additional incremental term loan facility of €30 million pursuant to the terms of its current facilities agreement and newly issued shares with a value of approximately €85 million.
The closing of the transaction is subject to customary regulatory review and is expected in June or July 2015.