Mergers Jumped In 2014

Portfolio restructuring made for a hot climate for chemical deals in North America in 2014, and the heat will continue this year, according to an analysis and survey by the management consulting firm A.T. Kearney. The number of chemical businesses changing hands in North America shot up 24% to 279 last year. Global deal activity, on the other hand, dipped 2% to 1,035 compared with 2013. Deal values grew by 16% in North America, compared with 13% worldwide. “Focus on the core business is a key driver” behind the jump in deals, says Andrew Walberer, an A.T. Kearney partner. Notable 2014 deals include Ashland’s sale of its water technologies business to the private equity firm Clayton, Dubilier & Rice for $1.8 billion and CF Industries’ sale of its phosphate fertilizer business to rival Mosaic for $1.4 billion. Eastman Chemical snapped up Taminco, an amines maker, for $2.8 billion. Financial investors were involved in just under 20% of deals last year, a level that has prevailed since 2009. But 50% of private equity acquisitions were of specialty chemicals firms, compared with only one-third in 2012.