Corporate Finance

Sale supports growth for chemical specialist

FRP leads on Industrial Chemical’s subsidiary sale to Brenntag

Background

Industrial Chemicals Group, headquartered in Essex, was founded in 1976 and has grown to turnover £125 million, manufacturing and distributing more than a million tonnes of specialist chemicals to its global client base every year. The group serves a variety of sectors including agriculture, water utilities, steel production, pharmaceuticals and homecare products, with customers ranging from large internationals to small, family owned businesses. Following interest from an overseas buyer, the company needed assistance to negotiate and structure the sale of a non-core subsidiary of the business.

Action

Our Corporate Finance team was engaged as lead advisers to manage all aspects of the sale of the company’s packed chemicals subsidiary, due to FRP’s track record and experience in successfully managing complex deals. The team ensured the deal was managed to a tight timetable and reached completion despite the ongoing COVID-19 restrictions. Our advice and support, particularly regarding tax structuring, materially enhanced value for the vendors.

Outcome

The team led on the successful strategic sale of the subsidiary business to German group Brenntag, in a deal that will provide the group with a platform for growth and investment as it looks to expand its existing operations, including nine sites in the UK and one in the United States. Brenntag operates a global network with more than 640 locations in 77 countries.

“This strategic sale represents an opportunity to further grow the wider business, with the funds generated providing capital to fuel our long-term growth objectives. We are very grateful for the support of the FRP team which was invaluable in leading us through a complex transaction process.” Steven Swaby, Finance Director at Industrial Chemicals Group

Our advice and support, particularly regarding tax structuring, materially enhanced value for the vendors. Chris Adlam Corporate Finance

Related team

Chris Adlam

Chris Adlam

  • Partner
  • Corporate Finance
  • Norwich

Joanne Price

Joanne Price

  • Senior Manager
  • Corporate Finance
  • Norwich

Matt Field

Matt Field

  • Senior Manager
  • Corporate Finance
  • Norwich