M&As: Edgewater Capital acquires US PTFE supplier; Saint-Gobain buys construction chemicals firm GCP for US$2.3 bn

US-based Altamira MS Holdings, a portfolio company of Ohio-based Edgewater Capital Partners, says it is continuing its investment in building a leading engineered components platform and has acquired Precision Fluorocarbon (PFI), a manufacturer of highly engineered, mission-critical PTFE components, such as custom diaphragms, bellows, and machined components, utilised primarily in semiconductor and industrial markets. PFI joins Altamira Material Solutions, a manufacturer of high-performance engineered components based in the Houston area, on the Altamira platform.

The addition of PFI to the Altamira family will enable both companies to better serve their existing and new customer bases through: engineering and manufacturing capabilities, including expertise in the custom diaphragm market and machining of complimentary polymer materials, such as PEEK, Delrin, PP, and more; portfolio of products, including threaded flanges, bushings and seals, bellows, O-rings, and diaphragms.

“We welcome the PFI team to the Altamira family, and we are excited to continue to invest to grow the service offering and enhance our combined customer experience,” noted Bob Girton, Partner, Edgewater Capital Partners and Chairman of the Board of Altamira.“

Meanwhile in other news, French construction materials company Saint-Gobain is to buy GCP Applied Technologies in a deal that values the US-based specialty construction chemicals company at around US$2.3 billion. GCP used to be part of WR Grace.

GCP makes concrete additives as well as sheet and spray-on barriers to control water, air, and vapour diffusion. GCP reported earnings of US$101 million last year on sales of US$903 million. The firm has 50 factories and 1,800 employees.

"This acquisition is a decisive step in establishing Saint-Gobain's leading position worldwide in construction chemicals with total sales of more than US$4.51 billion," Saint-Gobain said in a statement.

The purchase of GCP comes around seven months after the acquisition of Chryso, another player in the specialty construction chemicals business, for an enterprise value of more than US$1 billion.

"After the successful acquisition of Chryso, GCP is the logical next step to expand Saint-Gobain's presence in admixtures and additives, which provide key solutions to de-carboniSe the construction industry," Saint-Gobain said.

Saint-Gobain CEO Benoit Bazin highlighted the growth opportunities in the US construction sector, especially with the massive infrastructure plan launched by the Biden administration.

"The acquisition will create value by year three following the closing of the transaction. Saint-Gobain will finance the acquisition through cash on its balance sheet. Significant synergy opportunities are estimated at around US$85 million by year five," the company said.

Closing of the transaction, expected by year-end 2022, is subject to GCP shareholders' approval, antitrust approvals and satisfaction of other customary closing conditions.

(PRA)

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