Goldman Sachs Asset Management to sell Caldic to Advent International
Caldic to join forces with GTM, creating a global market leader in specialty chemicals distribution that will operate under the Caldic brand
Extending global reach, the combination will accelerate growth prospects with investment in employees, technology and sites
Advent to add significant expertise in chemicals, resources and capital
Rotterdam, 22 November 2021 – Goldman Sachs Asset Management today announced it has reached a conditional agreement to sell Caldic BV (“Caldic”) to Advent International (“Advent”). Caldic is a global premium provider of value-add life sciences and specialty chemicals solutions with the ambition to be a true partner to its customers and principals.
Caldic’s product portfolio includes innovative food ingredients, natural products and functional solutions for a variety of life sciences and industrial end-market segments. With a leading presence in Europe, North America and Asia-Pacific, its strengths lie in its global network combined with local expertise, giving the flexibility to meet customer-specific requirements, through customized formulation support and dedicated mixing and blending capabilities. The transaction is expected to close in the first half of 2022 subject to customary conditions and regulatory approvals. Terms of the agreement were not disclosed.
The acquisition by Advent is expected to further accelerate Caldic’s growth and will enable it to continue to provide high quality products and services to customers worldwide. With over 30 investments, Advent is one of the most experienced investors in the global chemical industry. In 2014, the firm acquired GTM, the largest independent specialty chemicals distributor in Latin America. Over its 35-year history, GTM has grown to become one of only two chemical distribution companies with a fully Latin-American footprint. In April 2017, GTM acquired quantiQ in Brazil, consolidating its position as a leading specialty chemical distributor in the region. Joining forces with Caldic, will create a truly global industry leader. Under Advent’s ownership, the combination, that will operate under the Caldic brand, will have the opportunity to continue its growth and further accelerate it, both organically as well as through acquisitions.
In recent years, Caldic has stood out as a rapidly growing, innovation-driven specialty ingredients and chemicals solutions distributor in Europe and across the globe. The company continues to make significant investments into value-add capabilities and shift its product mix towards the attractive and high growth end-markets in life sciences. Caldic’s management team has a track record of acquiring, integrating, and accelerating the growth of companies under its ownership. Caldic has signed 10 accretive acquisitions over the last 5 years, and further expanded on its track record this year with the acquisition of Scott Chemicals, a leading specialty chemicals distributor in Asia, which underlines Caldic’s ambition to become a leading value-add solutions provider in the Asia Pacific region.
GTM is the leading independent specialty chemicals distributor in Latin America. The company has experienced strong organic growth in recent years as a provider of value-added solutions and highly customized specialty products in Home and Personal Care, Fragrances, Rubber, Coatings and Adhesives and Lubricants. This growth has been accelerated through the acquisitions of leading specialty players like High Chem in Mexico, and quantiQ and GoalTech in Brazil. GTM’s focus has been to quickly transfer learnings and portfolio across the region, accelerating the growth of its principals while providing high levels of service and technical support to customers.
Alexander Wessels, CEO of Caldic, stated, “We are thrilled that Advent International is stepping in to support us in this next phase. Their commitment will help Caldic to achieve the next level of its growth ambitions and extend its global reach. Joining forces with GTM is an attractive next step for Caldic as we continue to build our value-add capabilities across the globe. We are very excited that the combination of both companies, that will continue to operate under the Caldic brand, creates a compelling business of global scale and makes Caldic well-positioned for further growth. The strong foothold of GTM in Latin America will enhance our ability to provide customers with innovative and sustainable products and services, reinforcing our motto ‘Because we care’. We are grateful to Goldman Sachs Asset Management for the dedication and support they have given us during the past years; they have been instrumental in our success.”
Ronald Ayles, Managing Partner and Global Head of Chemicals at Advent adds: “For the chemical and distribution industry, this is a time of great change, reorganization and consolidation – and for us as a committed, private equity buyer, one of great opportunity. As with all our investments, we pursue a long-term growth approach and intend to support Caldic throughout the next phase of growth. We see great prospects in the combination with GTM, nearly doubling the size of the New Caldic from the start and we look forward to working in close cooperation with the highly qualified employees and management team to firmly establish the combination as a global growth platform.”
“Supported by Advent International, a clear focused strategy and a strong team enabled us to grow and deliver value to our customers and principals, underlining our purpose of Creating Value in Chemistry through People”, states Rodrigo Gutierrez, CEO of GTM. “We are very excited to continue this journey as part of Caldic. Our portfolio of solutions and services is very complementary to Caldic’s impressive expertise and customized solutions offering and will enable the consolidated company to create value in end markets where we were not as strong. Latin America is a high growth market with tremendous opportunities and the joint expertise will allow us to help our current and new customers to seize such opportunities.”
Mike Ebeling, Managing Director and Head of DACH and Benelux Private Equity within Goldman Sachs Asset Management, said: “We are proud of Caldic’s success under Alexander and his leadership team and want to thank the leadership team for their dedication and outstanding contributions to the business. We are excited about the prospect for Caldic to join forces with Advent International and GTM and are convinced Caldic’s unique value add capabilities, its growth initiatives and a proven M&A track record will continue to drive its strong growth trajectory.” Adam Dawson, Managing Director and Head of EMEA Healthcare and Consumer Private Equity within Goldman Sachs Asset Management, added “Caldic’s transformation through organic initiatives and targeted M&A into a leading global provider of life science and specialty chemicals has been impressive. We are thrilled to have supported the Company's global expansion and organisational build-up, leveraging the Goldman Sachs Value Accelerator, to create a strong platform for its next phase of growth.”
Patrice Etlin, Managing Partner Advent in Latin America adds: “This is an excellent opportunity for GTM, as leading chemical distributor in Latin America, to become part of a stronger group with an extended global reach. For Caldic, we see further growth potential towards the future, through expansion and investment to strengthen the company’s already well-established market position. We have the track record, operational skills and cultural sensitivity to work effectively with the management team to create a new global champion in a rapidly evolving market.”
The selling shareholders and Caldic are advised by Goldman Sachs Bank Europe SE and Morgan Stanley & Co. International plc.