Element Solutions Inc Announces Planned Acquisition of Coventya

Element Solutions Inc (NYSE:ESI) ("Element Solutions", "ESI" or "the Company"), a global and diversified specialty chemicals company, has announced a binding offer* to acquire Coventya Holding SAS ("Coventya"), a global specialty chemicals provider for the surface treatment industry. Under the terms of the offer, Element Solutions will pay approximately EUR 420 million in cash, subject to certain adjustments, including assumption or repayment of debt.

The transaction is expected to close by the end of the third quarter or end of the fourth quarter of 2021, subject to obtaining certain regulatory approvals, completion of necessary employee consultation procedures, and other customary closing conditions. Following completion of the transaction, Coventya will join MacDermid Enthone Industrial Solutions and will be reported in the Company's Industrial and Specialty segment.

Coventya is a global expert in developing metal finishing chemical technologies, offering a range of solutions that provide decorative and functional coatings for industrial end markets in more than 60 countries. The business has production facilities in Asia, Europe and the Americas and its products serve customers globally in the automotive, fashion, construction, electronics, consumer goods, energy and aerospace/defense end markets.

Coventya is expected to generate annual sales of approximately EUR 160 million and adjusted EBITDA of more than EUR 30 million for the 2021 financial year ending in September. On a proforma basis, following the realization of expected annual synergies, the proposed acquisition price represents less than 10 times Coventya's projected adjusted EBITDA for the 2021 financial year.

President and Chief Executive Officer Benjamin Gliklich said, "We are delighted to announce the transaction we have offered to Coventya. This is an excellent business that fits our acquisition criteria flawlessly and is a company we have admired for decades. Coventya has a long history of providing innovation and high-quality solutions in attractive niche markets like ours. We believe that Coventya's deep customer relationships, solution-oriented approach and outstanding team will enhance our company and the breadth and quality of solutions we provide to our key markets.

With this acquisition, we expect our MacDermid Enthone Industrial Solutions business to benefit from advanced scale and strong complementary product offerings. We take great pleasure in nothing else but investing in businesses and teams equally as strong as those behind our robust operations and leaders. The opportunity provided with Coventya is a great case study for this and we look forward to welcoming the Coventya team to the Element Solutions family."

Coventya Chief Executive Officer Erik Weyls said, "This transaction is a major milestone for our company. We look forward to Element Solutions providing Coventya with the resources and capabilities to accelerate our growth.

This has been a long-standing logical combination that we believe will deliver to customers a broad package of advanced solutions that will differentiate us in our markets. I am incredibly proud of the team that has driven Coventya's success to date and grateful for their efforts in building such an extraordinary company. The future is bright for our business and employees, and we all look forward to being part of the dynamic company that the Element Solutions team is building."

* Under French law, Coventya's shareholders cannot accept the Company's offer or enter into a binding purchase agreement until consultation procedures with certain employee representative bodies are completed.