Global private equity investor Advent International and Wilbur-Ellis have reached an agreement to merge their life sciences and specialty chemicals solutions businesses, Caldic and Connell.
The transaction, which is expected to close in the first quarter of 2023, will result in the creation of a global platform with a substantial presence in two high-growth regions: in APAC with Connell and Latin America with Caldic. Moreover, the merger will accelerate growth opportunities of the new entity such as investments in people, technical labs, and sites.
Together, Caldic and Connell will have more than 3,800 employees across 43 countries, which provide solutions to over 35,000 customers by leveraging 75 formulation centers and application labs and deep application know-how. The combination will generate sales of about EUR 3 billion (USD 2.9 billion).
Caldic had rapid growth in the past few years, acquiring other companies and subsequently integrating and accelerating their growth under its ownership, while Connell has technical and marketing expertise built over 125 years of local presence across the Asia-Pacific region. Connell's product portfolio includes specialty chemicals and ingredients for nutrition and health as well as industrial compounds, such as coatings, rubber, and lubricants.
“By bringing together the highly complementary businesses of Caldic and Connell, we will form a truly global business with significant exposure to high-growth regions and very diversified end markets with a high value-add offering. In Wilbur-Ellis, we have found a committed partner who shares our long-term vision of building a fully integrated growth and innovation-focused business. We look forward to working together with Wilbur-Ellis and the management teams of both Caldic and Connell in this exciting new chapter which brings synergistic business development opportunities for principals and customers alike,” said Ronald Ayles, managing partner at Advent.
“We couldn't be more excited about the partnership between Connell and Caldic. With Caldic's strong global position and Connell's 125-year presence in Asia-Pacific, the partnership will immediately establish a global, privately-held specialty chemicals and ingredients distribution leader. The combined organization will provide a broad range of solutions for customers,” said John Buckley, Wilbur-Ellis’s president, and CEO.
“We are thrilled that Advent is partnering with Wilbur-Ellis as this will create a unique opportunity to combine two major players, Caldic and Connell, each with a strong family heritage who are supported by a strong private shareholder base with extensive expertise in the sector. Bringing together similar entrepreneurial cultures and complementary geographies reinforces our ambition to establish Caldic as a global growth platform with a significant presence in two high-growth regions, Asia-Pacific and Latin America. This is an exciting moment to join forces as we accelerate our growth and firmly position the business as one of the major global players in our industry,” Alexander Wessels, CEO at Caldic.
“In terms of value creation, this is a huge win for our customers, suppliers, and employees. We will be stronger than ever and able to bring reach and capabilities to the segments we serve, as well as global growth opportunities for our employees,” said Azita Owlia, CEO of the combined entities in the APAC region.
