Platform Specialty Products Corp. (West Palm Beach, Fla.; www.platformspecialtyproducts.com) and Alent plc (Woking, U.K.; www.alent.com) announced the terms of a recommended offer by Platform to acquire all of the issued and outstanding shares of Alent in a cash and stock transaction for approximately $2.1 billion. Including net debt, the total transaction value is approximately $2.3 billion.
Alent is a global supplier of specialty chemicals and engineered materials used primarily in electronics, automotive and industrial applications. Alent supplies high-performance consumable products and services that create value by enabling superior end-product performance in the areas of functionality, reliability and longevity. Alent adds value to its customers’ businesses by providing products and services that allow them to increase the efficiency and quality of their operations and products. Alent’s business comprises two business segments: Enthone, its surface chemistries business — a global supplier of electroplating chemistry to the electronics, automotive and industrial industries; and Alpha, its assembly materials business — a global supplier of interconnect materials, primarily into electronics applications.
Alent is a highly attractive business with compelling growth prospects and a proven financial track record. Platform believes the transaction will allow it to combine complementary product portfolios and geographical footprints. Additionally, it will improve the geographic range and product capabilities in surface treatment, expand Platform’s product offering and provide an opportunity to unlock substantial value through the realization of material costs synergies and sales growth opportunities. 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.
Both companies’ boards of directors unanimously support the transaction, which is expected to close in late 2015 or early 2016 after the satisfaction of the applicable closing conditions, including Alent shareholder approval and regulatory approvals in certain jurisdictions. Following closing of the transaction, Platform will remain a New York Stock Exchange listed company domiciled in the U.S.