RCS - Arxada AG - Arxada acquires Enviro Tech Chemical Services

Lonza AGAnnouncement

23/12/2021 08:00

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RNS Number : 5446W  Arxada AG  23 December 2021

 

Arxada acquires Enviro Tech Chemical Services, expanding presence into food
and beverage market

 

§ Acquisition brings highly complementary and innovative solutions to
Arxada's portfolio, including peracetic acid-based, environmentally
sustainable offerings

§ Second strategic deal by Arxada since starting its transformation journey
as an independent company in July 2021

 

Basel, Switzerland - 23 December, 2021 - Arxada AG, a global leader in
specialty chemicals, today announces it has completed the acquisition of
Enviro Tech Chemical Services, Inc. ('Enviro Tech'), effective 22 December
2021. Enviro Tech is a category-leading manufacturer of proprietary and
high-efficacy antimicrobial and biocidal products.

 

The acquisition represents the second strategic deal by Arxada, formerly known
as Lonza Specialty Ingredients (LSI), in its first six months as an
independent company. Arxada is owned by private equity funds Bain Capital and
Cinven.

 

Enviro Tech brings a market-leading and innovative antimicrobial and biocides
platform with a broad IP portfolio. It has robust and complementary
distribution channels and deep customer relationships across a range of highly
attractive end-markets with strong growth prospects.

 

The acquisition will create a new, complementary business line in Arxada's
Microbial Control Solutions ('MCS') business. It will have a focus on
peracetic acid ('PAA'), bromines and specialty products, notably for the food
and beverage, agriculture and wastewater treatment segments.

 

Arxada will benefit from Enviro Tech's leadership in innovation and strong
focus on specialty formulations, as well as its unique, highly effective
solutions. In particular, Enviro Tech's capabilities in PAA, an
environmentally sustainable alternative to chlorine, will be highly
complementary to Arxada's existing chemistries for the hygiene market. This
will serve as a strong basis for future growth across the food and beverage
end-market.

 

The acquisition will also enhance Arxada's manufacturing footprint through the
addition of three large-scale manufacturing facilities in strategic locations
in the United States - Modesto, California; Helena, Arkansas; and Levelland,
Texas. Each facility has significant available capacity for existing and new
products and will benefit from Arxada's scale and operational expertise.

 

Commenting on the acquisition, Marc Doyle, Chief Executive Officer of Arxada,
said:

"The acquisition of Enviro Tech is another important and strategic deal for
Arxada as we extend our position within the microbial control industry. Enviro
Tech brings direct access to the USD 6 billion food and beverage hygiene
market and adds capabilities in sustainable and highly complementary
chemistries. This is our second strategic transaction in our first six months
as an independent company, and further reinforces our commitment to adding new
products and end-markets to our growing Microbial Control Solutions portfolio.

 

"Enviro Tech's strong culture of innovation is a great fit with Arxada's
strategic plans to expand our MCS capabilities and to develop unique solutions
to meet our customers' needs and drive our future growth.

 

"We welcome our new colleagues at Enviro Tech to build on our combined
innovation capabilities to create new, sustainable products. This is a key
focus area as we look to reduce the environmental impact of our products,
while still maintaining high standards of quality and performance."

 

Mike Harvey, Founder and former CEO, Enviro Tech, commented:

"Enviro Tech has had innovation at the heart of its operations throughout its
30-year history, with a strong track record of outstanding performance and
growth. Our entrepreneurial approach and fast-paced innovation strategy,
coupled with Arxada's operational expertise and scale, will enable us to
develop new, sustainable solutions for our customers. Together, we can
continue to lead the way in pioneering innovative solutions in the specialty
chemicals market."

 

Mike Harvey joins Arxada as Senior Fellow in the Technology & Regulatory
organization. Brent Bankosky, former President of Enviro Tech, will lead the
newly created business line.

 

Kirkland & Ellis and Baker McKenzie are acting as legal advisors, and
Deutsche Bank as financial advisor to Arxada and its owners Bain Capital and
Cinven.

 

Capstone Partners are acting as strategic advisors, and Weintraub Tobin
Chediak Coleman Grodin as legal advisor to Enviro Tech.

 

Financial details of the deal have not been disclosed. This transaction
follows the proposed combination with Troy
(https://www.arxada.com/news/2021-11-03) announced on 3 November 2021.

 

- ENDS -

Media Enquires

 Arxada                                                                      FTI Consulting

 Birgit Gronkowski,                                                          Ann Bartling/Rob Winder

 Head of Communications                                                      Tel: +44 20 3727 1000

 Tel: +41 61 316 8111                                                        Email: Arxada@fticonsulting.com (mailto:Arxada@fticonsulting.com)

 Email: birgit.gronkowski@arxada.com (mailto:birgit.gronkowski@arxada.com)

About Arxada

 

Arxada, formerly part of Lonza Group, is a global specialty chemicals business
with a world-class offering in Microbial Control Solutions ('MCS') and
Specialty Products Solutions ('SPS'). Arxada provides a broad portfolio of
differentiated products targeted at a range of end uses, supported by its
leading regulatory capabilities, IP expertise and established track record in
R&D.

 

Arxada's MCS business is a world leader addressing six target applications:
hygiene, home and personal care, paints and coatings, crop protection,
material protection and wood protection. MCS is built on superior regulatory
expertise, the broadest set of antimicrobial agents and the widest range of
registrations in the world, which are critical to maintaining the integrity of
its customers' products.

 

Arxada's unique SPS business provides complex, high-quality technologies and
chemistries to customers across a range of industries within its three
divisions: performance intermediates and chemicals, composite materials and
the custom development and manufacturing organisation. The two businesses work
closely together to provide complementary expertise and deliver unique,
innovative solutions to help customers protect their products from harmful
microorganisms, improve health and safety and reduce their environmental
footprints.

 

Arxada has a global footprint spanning 32 countries across five continents.

 

Arxada is owned by Bain Capital Private Equity and Cinven.

 

To learn more about Arxada, please visit: arxada.com (https://www.arxada.com/)
and Arxada on LinkedIn (https://www.linkedin.com/company/arxada/) .

 

About Enviro Tech Chemical Services, Inc.

Enviro Tech Chemical Services, Inc. (ETCS), a leading manufacturer and
supplier of innovative bromine technologies and peroxyacetic acid
formulations, delivers wide-ranging solutions that optimize operational
efficiencies for keeping food and water safe and environments clean. ETCS
partners with distributors to provide a complete line of EPA and FDA approved
products for a variety of industries, including industrial water treatment,
meat and poultry processing, food & beverage, agriculture, animal health,
oil & gas, wastewater treatment and more. ETCS holds 41 EPA registrations,
15 FDA Food Contact Notifications, and 14 U.S. patents. ETCS is privately
held.

 

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