DKSH to acquire North American specialty chemicals distributor Terra Firma

Latest: DKSH has created a scalable platform to expand its presence in North America’s high-performance materials space with the acquisition of Terra Firma.

CASE raw material global distribution platform

Terra
With operations in the US and Canada, Firma is a key supplier in the core areas of CASE (coatings, adhesives, sealants and elastomers), plastics and construction, agrochemicals, health and nutrition, and personal care.

The addition of a strong player in the North American industrial specialty chemicals distribution segment is a significant contribution to DKSH’s Performance Materials business and complements DKSH’s existing specialty industrial business globally.

Terra Firma currently employs approximately 100 highly skilled professionals in the region and has offices in Los Angeles, Dallas, Baltimore and Toronto.

Terra Firma expects 2022 net sales of approximately $240 million. The transaction is expected to close by the end of the year, with an enterprise value of $360 million.

Expanding Functional Materials Business

DKSH will acquire at least 80% of Terra Firma, with the remainder held by the company’s existing management team. The deal is accretive to earnings per share and will be financed with debt and cash.

Stefan Butz, CEO of DKSH, commented: “Expanding our presence in the North American market has been a strategic priority for our Performance Materials business.”

“Terra
Firma’s team operates from coast to coast and will accelerate our expansion into the North American specialty chemical distribution market, while we will provide their customers with access to our global network. Acquisition of Terra
Firma is a milestone in DKSH’s transformation into a global player,” added Butz.

Tim Fetters, CEO of Terra Firma said, “Terra
Firma has earned an excellent market reputation by delivering value and significant growth to its customers and suppliers. By joining DKSH, we will be able to further leverage our growth platform and increase our presence in life sciences. ”