IMCD to acquire US specialty chemicals distributor The M.F. Cachat Company

International specialty chemicals distributor IMCD N.V. (Rotterdam, The Netherlands) announced it will acquire 80% of The M.F. Cachat Company (Lakewood, OH – US), including 100% of MJS Sales, Inc. (“MF Cachat”) from the company’s management, who will continue to lead the company. The remaining 20%, which are also owned by management, will be acquired at the latest in 2017.

In 2014, MF Cachat generated revenue of USD 300 mn (including USB 3 million of MJS Sales)  with ca. 90 employees. The company has a focus on Coatings, Construction, Plastics, Advanced Materials and Food and is active in the Midwest, Central, Eastern and Southern regions of the US. It represents represents leading global chemical suppliers in more than 30 states.
According to the statement from IMCD, “MF Cachat fits well with the IMCD business model and strategy and provides a significant platform for further growth in the United States which is a growing specialty chemicals region.”
IMCD is planning to pay for the acquisition with available cash, existing facilities and an additional incremental term loan facility of EUR 30 mn, pursuant to the terms of its current facilities agreement and newly issued shares with a value of approximately EUR 85 mn.

Closing of the transaction, which is subject to the customary regulatory review, is expected for June/July 2015.

Source: IMCD press release

HGE – DCG / 15.05.2015