US based Chase Corporation, one of the leading global manufacturers of protective materials for high-reliability applications across diverse market sectors, recently announced that it has entered into a definitive agreement to acquire US headquartered NuCera Solutions. NuCera is one of the recognized global leaders in the production and development of highly differentiated specialty polymers and polymerization technologies serving demanding applications, offering products critical to enabling end-product functionality, performance and reliability.
NuCera’s primary production facility is based in Barnsdall, Oklahoma and additional international sales offices in France and Singapore. The Company employs approximately 130 people globally. As per the source, the trailing 12-month period ended April 30, 2022, the Company recognized an estimated revenue of USD83 million with Adjusted EBITDA margins exceeding 25%.
Reportedly, NuCera will be acquired for a purchase price of USD250 million, pending any working capital adjustments and excluding acquisition-related costs. The purchase will be funded by utilizing Chase’s existing revolving credit facility and available cash on hand. The transaction is expected to close by the end of the third calendar quarter of 2022, subject to customary closing conditions and regulatory approvals. Chase expects this acquisition to be accretive to earnings within the first year of ownership. Chase will be modestly levered post acquisition and maintains ongoing financial flexibility.
Adam P. Chase, President and Chief Executive Officer of Chase Corporation, commented, “The acquisition of NuCera is transformational in advancing Chase’s strategic growth priorities. NuCera is a recognized leader in developing and manufacturing specialty polymers and polymerization technologies that serve demanding applications globally. The Company’s strong market position, North American manufacturing footprint and captive synthesis capabilities will allow us to gain additional scale and expand our presence across multiple new high-growth end markets, while maintaining both a strong balance sheet and financial flexibility. NuCera’s culture and technology driven growth oriented mindset closely align with those of Chase, and we are excited to welcome the NuCera team and their highly differentiated products to Chase Corporation and its customers.”
Steven McKeown, Chief Executive Officer of NuCera, commented, “After a notable period of growth, we are very excited to join the Chase family which offers a strong cultural and strategic alignment to our business. Our portfolio of innovative, high-performance products is well aligned with Chase’s core philosophy of making a material difference. On behalf of everyone at NuCera, we greatly look forward to beginning our journey with the Chase team.”
Mario Toukan, Managing Director of SK Capital, commented, “It has been a pleasure to support the development and growth of NuCera. SK invested heavily in NuCera’s people, capabilities and facilities, establishing a leading platform of technology-oriented, specialty polymers. We believe NuCera is well-positioned to continue its growth under Chase Corporation’s ownership and we wish them continued success.”
