Private equity firm KKR & Co (KKR) has announced its decision to acquire chemical maker Chase (CCF) in an all-cash deal valued at around $1.3 billion, including debt. This acquisition is part of KKR's strategy to strengthen its presence in the specialty chemicals sector. The deal entails KKR purchasing all outstanding shares of Chase common stock for $127.50 each. This price is slightly lower (0.3%) than the stock's last close but is 3.6% higher than on June 9, when reports first emerged that Chase was considering a sale.
The shares of Chase, a company manufacturing chemical's such as adhesives and coating materials for various industries like automotive, electronics, and energy markets, fell by 1.5% in premarket trading following the announcement. Nevertheless, the move marks a significant expansion for KKR into the chemicals industry and an opportunity for Chase to leverage KKR's resources and expertise to further its growth.
KKR has been aggressively pursuing new deals to diversify its portfolio across multiple sectors. Recent acquisitions have seen the firm expanding its investments in tech, healthcare, real estate, energy, and credit sectors. In a noteworthy development last month, KKR agreed to purchase up to 40 billion euros of PayPal's (PYPL) buy-now-pay-later loans in Europe, showcasing the firm's interest in the financial services sector as well.
Another upcoming deal for KKR involves the acquisition of valve and pump maker Circor (CIR) in a deal estimated to be worth $1.7 billion. This acquisition, similar to the Chase deal, exemplifies KKR's strategic approach to portfolio diversification and highlights its significant activity in the M&A landscape.
