Q1 2015 Chemicals DealReader
Transcription
Q1 2015 Chemicals DealReader
DEAL READER | Chemicals The Chemicals Intermediary Q1 2015 Edition Q1 2015 Global Chemicals M&A Market Commentary Key topics in this edition: Global Chemicals M&A Outlook for 2015 Performance of the Chemicals Industry in Q1 2015 Market Commentary and Selected Transactions in Q1 2015 Impact of Sustained Low Crude Oil Prices on M&A Activity Q1 2015 Key Chemicals Market Statistics New Hire — Chemicals Director for German-Speaking Europe Global Chemicals M&A Outlook for 2015 Andrew Karlin is a New Yorkbased Associate with Lincoln’s Global Chemicals practice. He is a graduate of Wharton Business School and the Lauder Institute for International Studies. The global chemicals industry had a moderate showing in Q1 2015 given improved economic conditions, increased manufacturing activity and robust automotive sales in key markets. However, the industry faced headwinds from a harsh winter season, delayed shipments from West Coast ports, weak Eurozone markets, a slowing Chinese economy and major price declines in petrochemicals and plastics following the plunge in oil prices. Chemicals companies should realize modest growth and price hikes next quarter during the spring construction season. Global chemicals M&A activity should remain fairly strong during 2015, drawing momentum from 2014, which was a busy year of dealmaking with 635 transactions completed globally at an aggregate value of nearly US$78 billion. Despite the collapse of oil prices and the overhang on oilfield services, M&A activity has been fueled by high backlogs, strong buyer appetite, activist pressures, receptive public markets, low o r ganic growth envir onm ents , healthy balance sheets and ready access to capital. In 2015, cash-flush chemicals companies will continue to hunt for — and pay premium multiples for — unique assets with high-growth potential, proprietary technologies and defensible high-margin profiles. In general, growth is now seen as more attractive than high margins, with 1 buyers willing to pay higher multiples for companies demonstrating highgrowth trajectories. Diversified chemicals are also keen to realign their portfolios and shed non-core, lowmargin, low-growth or burdened business lines. For instance, Dow Chemical Co. announced that it will divest most of its century-old chlorine business to Olin Corp. in a taxefficient deal valued at US$5 billion. In addition, DuPont Co. announced that it will spin off its performance chemicals business into a newly created public entity, Chemours Co. Strategic and financial buyers remain active in the current market given significant capital availability from cash on hand, liquid debt markets and continued low interest rates. Corporate balance sheets have strengthened. According to the Federal Reserve, for instance, US corporates collectively had around US$2.1 trillion of cash on hand as of the end of 2014. Trading multiples are high, enabling buyers to pay attractive valuations using stock as consideration. Further, in a break from past periods, public markets are rewarding strategics that pursue thoughtful and disciplined inorganic growth strategies. Private equity groups, in turn, continue to have more than US$500 billion of cumulative dry powder to deploy. Chemical commodities, specialty materials, fertilizers and agricultural chemicals, industrial gases and biotech substrates are expected to see heightened M&A activity. Deal activity jumped in every chemicals segment in 2014 versus 2013, except for industrial gases, which remained flat. The commodities segment accounts Lincoln International D E A L R E A D E R Chemicals for the bulk of chemicals M&A activity — more than 60% — according to data from Capital IQ. Following declining activity from 2011 to 2013, the segment rebounded in 2014, with a 12.6% jump in completed transactions. Major deals included Westlake Chemical Corp.’s US$666 million acquisition of Vinnolit Holdings GmbH from Boston-based private equity firm Advent International at a 0.5x LTM revenue and 6.0x LTM EBITDA multiple. Bavaria-based Vinnolit manufactures PVC products. Another major deal was the acquisition of a 66% stake in Ciech SA for US$797 million by Luxembourgbased private equity firm Kulczyk Investments S.A. at a 0.9x LTM revenue and 6.9x LTM EBITDA multiple. Warsaw-based Ciech produces and distributes commodity chemicals, such as soda ash, baking soda and polyester resins. Deal activity in the commodities segment is likely to remain hot in 2015 given ongoing corporate realignment and portfolio changes. Diversified chemicals players are shifting their focus from commodity chemicals to higher value-added product offerings. Activist shareholders have urged diversified chemicals companies to streamline. Take, for instance, the spirited campaign by Nelson Peltz of Trian Fund Management to break up DuPont Co. The specialty materials and agricultural chemicals segments are set to outperform this year as well, driven by increased buyer appetite and a heightened need to achieve higher agricultural productivity and sustainability around the world. ■ www.lincolninternational.com Q1 2015 © 2015 Lincoln International LLC Guest Columnist — Slowing Momentum in Q1 2015 Richard O’Reilly, CFA, is a chemicals analyst who writes for Revere Associates. Previously, he served as Associate Director at S&P in its US Equity Research — Chemicals Division. Business conditions for the US chemicals industry modestly strengthened during Q1 2015. At the start of the earnings season, we expect most chemicals companies to report modestly higher earnings for Q1 versus the year ago period. As expected, however, Dupont Co. has reported lower EPS, and we project Dow Chemical Co. to report lower EPS as well. Dupont Co. and Dow Chemical Co. are the two largest US chemicals companies by sales. While lower selling prices should impact, to various degrees, makers of petrochemicals and plastics, margins in Q1 for specialty chemicals producers were generally helped by the drop in commodity prices, and we expect a greater impact in Q2. Headwinds such as slow European markets will likely limit results for companies with exposure to that region, while the rapid strengthening in Q1 of the US dollar against key foreign currencies (up 12.7% versus the euro) will also have a greater negative impact than had been anticipated in early 2015 for companies with foreign operations and export customers. Negative impacts from the drop in oil & gas prices on companies depend on their individual exposures to energyrelated customers and markets. The negative factors of the stronger US dollar, sluggish European economies and lower selling prices have continued into April. In a sign of possible broader industry earnings disappointment for the first quarter and full year, several companies in late March, including Airgas, Inc. and H.B. Fuller Co., reported or warned of lower than previously expected sales and earnings. In late March, the American Chemistry Council (ACC) reported that its Chemicals Activity Barometer (CAB), a macroeconomic indicator based on chemicals industry data, on a threemonth moving average basis, was unchanged in March following gains in the prior two months. The ACC noted that the index in March signaled slow gains in US business activity through Q3 2015. The global manufacturing sector, the most important market for the chemicals industry, continued to expand at a modest, but steady pace each month of Q1, 2 according to monthly worldwide PMI surveys. The US manufacturing sector also appeared to continue to slowly strengthen each month during Q1. According to the Institute for Supply Management’s monthly reports for manufacturing activity, the pace of expansion of the US manufacturing sector moderated during the first quarter, with March having the slowest growth in more than a year, in part due to greater impacts from the recent downturn in the energy sector and of the stronger US dollar on exports. The ISM reports for Q1 indicated that the chemicals industry grew each month, including for production and new orders, although export orders declined each month, a sign of the impact the stronger dollar is having on the US industry. Railcar loadings suggest shipment comparisons grew only modestly in Q1. According to the Association of American Railroads, US chemicals railroad carloads for Q1 increased 1.8% year-over-year, the strongest quarterly gain since Q2 2014, led by healthier shipment gains early in Q1 as March declined 0.4% from the year earlier month. For 2014, shipments increased 1.2%. Railroads carry about 30% of industry shipments. Industry production of chlorine was greater in January and February versus the comparable year-earlier months, resulting in year-to-date output rising 2.2%. Both production and sales of plastic resins for the first two months of 2015 were up slightly. Selling prices for petrochemicals continued to decrease during Q1, following the sharp decline in oil and related feedstock prices in late 2014. This drop in oil prices has also narrowed the feedstock cost advantage US petrochemical producers have enjoyed versus oillinked (naphtha) competitors. The domestic monthly contract price for ethylene, the largest volume petrochemical monomer, decreased for six consecutive months since September, with March at its lowest since August 2009, in large part due to lower global prices and the restart of industry capacity following unusual production issues in 2014. The contract price in Q1 averaged 22% below Q4 2014 and 28% under Q1 2014. Ethane, a major raw material for US makers of ethylene, in Q1 averaged lower than in previous quarters, helping to partly offset the negative impact on ethylene margins from the decline in selling prices. The relatively low price of domestic ethane has given US producers a cost advantage relative to other global regional competitors. Lincoln International D E A L R E A D E R Chemicals Domestic prices for major derivative plastics also declined during Q1 but at a pace less than that for ethylene. Polyethylene decreased for four consecutive months since October before being unchanged in March as demand firmed. Major producers have announced a price increase for May that may have some success. The recent decline in selling prices will likely hurt makers such as LyondellBasell Industries and Westlake Chemical Corp. We believe that polyvinyl chloride prices, which also declined during Q4 and in January driven by lower ethylene prices, experienced an increase in March after vinyl producers announced a series of price hikes ahead of the start of the important spring construction season. Vinyl producers include Axiall Corp. and Westlake Chemical Corp. Contract prices in Q1 for propylene, the second largest volume monomer, averaged almost 30% lower sequentially. The monthly prices fell a total of about 36% over the November through January period; prices for last October were at their highest level since early 2013. After a modest rise in February, contract prices declined for both March and April to the lowest level since 2009. These sharply lower prices have resulted in reduced prices, at least temporarily, for derivatives products to buyers such as paint makers (including Sherwin-Williams Company, PPG Industries Inc. and Valspar Corporation). Inorganic prices, in contrast, were generally steady in Q1 2015. We believe that caustic soda contract prices were unchanged, as an announced price increase was unsuccessful, following a modest increase achieved in late 2014. Producers will again push a price increase that has been proposed for Q2 in anticipation of tighter industry conditions. Chlorine prices during Q1 remained relatively unchanged. We expect chlorine prices to stay steady early in Q2 2015, but producers may realize some success in their announced Q2 price hikes, the first such attempted price hike for chlorine since a failed attempt last year. Dow Chemical Co., Olin Corp. and Axiall Corp. are major chlor-alkali makers. ■ This section reflects the views of Richard O’Reilly, CFA, who writes for Revere Associates. Mr. O’Reilly is not employed or compensated by Lincoln International, and the views set forth in this section are those of Mr. O’Reilly and should not be assumed to reflect those of Lincoln International. Richard O’Reilly, CFA Managing Analyst — Revere Associates 732-821-5043, [email protected] www.lincolninternational.com Q1 2015 © 2015 Lincoln International LLC Market Commentary and Selected Transactions in Q1 2015 Global chemicals M&A activity in Q1 2015 remained steady following a busy year of deal-making in 2014. There were 133 chemicals M&A transactions announced in Q1 2015, a slight drop in volume compared to the 148 chemicals M&A transactions announced in Q1 2014. Several notable large transactions were announced or closed this past quarter, including the following: On February 3, 2015, Tronox US Holdings Inc. signed a definitive agreement to acquire Philadelphiabased FMC Alkali Chemicals, Inc., which produces natural soda ash, from FMC Corp. for US$1.64 billion in cash. The deal was completed on April 1, 2015. On March 15, 2015, A. Schulman executed a definitive agreement to acquire Citadel Plastics Holdings, Inc. from HGGC, LLC and Charlesbank Capital Partners for US$800 million in cash, representing 1.5x LTM revenue and 10.7x LTM EBITDA. Illinois-based Citadel Plastics manufactures and distributes thermoplastic compounds and thermoset resins used in appliances, housewares, healthcare products, automotive, agriculture, indoor and outdoor lighting, HVAC, construction and other industrial applications. On March 26, 2015, Olin Corp. agreed to acquire the Chlor-Alkali and Downstream Derivatives Businesses from Dow Chemical Co. for US$5.105 billion, representing 8.0x LTM EBITDA. The deal is structured as a Reverse Morris Trust transaction in which Olin will pay US$2.03 billion in cash and US $2.2 billion in stock and assume liabilities of US$875 million. As a result, Dow shareholders will receive approximately 50.5% of the shares in Olin, with existing Olin shareholders owning approximately 49.5% of the combined entity. Numerous middle market chemicals transactions were announced or closed in the previous quarter, 3 including the following: On January 13, 2015, Merinos Hali Sanayi Ve Ticaret A.S. announced a definitive agreement to acquire a 51% majority stake in Sasa Polyester Sanayi A.S. for US$182 million. Turkey-based Sasa Polyester manufactures specialty polymers and chemicals, including thermoplastic polyester elastomers, plasticizers and polyethylene terephthalate solutions. The implied revenue and EBITDA multiple would be 0.5x and 7.2x, respectively. On January 27, 2015, ALLETE, Inc. signed a definitive agreement to acquire an 87% stake in US Water Services, Inc. from Excellere Partners for US$168 million, representing a 1.6x LTM revenue multiple. US Water provides chemicals and equipment for water management and treatment to industrial customers across the US The deal closed on February 10, 2015. On February 2, 2015, Schweiter Technologies AG entered into a definitive agreement to acquire Polycasa N.V. from Aventas Group for around US$130 million, representing an LTM revenue multiple of 0.7x. Belgium-based Polycasa manufactures plastic sheets for a range of applications. The deal closed on March 31, 2015. On February 11, 2015, Grasim Industries Limited agreed to acquire Aditya Birla Chemicals (India) Limited for approximately US$240 million — at a 1.3x LTM revenue and 5.2x LTM EBITDA multiple. India-based Aditya Birla manufactures caustic soda lye, liquid chlorine, hydrochloric acid, sodium hypochlorite and aluminum chloride for a wide range of applications. On February 17, 2015, Katakura Chikkarin Company Limited agreed to acquire Co-Op Chemical Co., Ltd. for nearly US$120 million — at a 0.5x LTM revenue and 15.9x LTM EBITDA multiple. Lincoln International D E A L R E A D E R Chemicals Tokyo-based Co-Op Chemical manufactures fertilizers, calcium phosphate, phosphoric acid, industrial lime nitrogen and other chemical products. On March 19, 2015, New Yorkbased private equity firm SK Capital Partners announced a definitive agreement to acquire a majority stake in AEB SpA from Investindustrial and AEB executives. Italy-based AEB provides fermentation products for winemaking as well as detergents and sanitizers. The deal terms were not disclosed. On March 26, 2015, Israel Chemicals Ltd. signed a definitive agreement to acquire the remaining 83.64% stake in Toronto-based Allana Potash Corp. for approximately US$110 million. Allana Potash focuses on the acquisition and development of potash properties largely in Ethiopia. From January 2013 to the end of Q1 2015, the LI Specialty Chemicals index has outperformed the S&P 500 by 17%, whereas the LI Diversified Chemicals index has underperformed the S&P 500 by 17%. Over the course of Q1 2015, the LI Specialty Chemicals index has increased nearly 7%, compared to around 3% for the LI Diversified Chemicals index and around 1% for the S&P 500. The average TEV / EBITDA multiple for large-cap specialty chemical firms jumped to 14.1x in Q1 2015, up nearly 17% when compared to Q1 2014. The average multiple for smallcap specialty chemical firms soared to 11.8x, increasing more than 25%, as compared to Q1 2014. The average multiple for diversified chemical companies increased to 10.6x at the end of Q1 2015, up more than 10% when compared to Q1 2014. Multiples have expanded, as stock prices have risen despite lukewarm financial performance. ■ Sources: S&P Capital IQ; Mergermarket, FactSet MergerStat, Federal Reserve; analyst reports; press releases; public filings www.lincolninternational.com Q1 2015 © 2015 Lincoln International LLC Impact of Sustained Low Crude Oil Prices on M&A Activity The price of crude oil has declined by ~50% since the 52-week high in June 2014 due to fundamental supply and demand dynamics. On the supply side, the shale gas revolution in the US has changed the game for global oil & gas markets. Enticed by $100+ per barrel oil prices, E&P companies began “fracking” en masse. As a result, US crude oil production has nearly doubled over the last 7 years, reaching all-time highs, and global production has expanded by ~10%. The Energy Information Administration estimates that the US could become a net energy exporter within the next five years, projecting that US production will reach 10.6 million barrels per day by 2020. Recently, OPEC has decided to maintain collective production at more than 30 million barrels of oil per day, and Western E&P companies have been identifying or developing vast reserves around the world. For instance, UK Oil & Gas Investments recently revealed that it discovered up to 100 billion barrels of oil onshore near Gatwick Airport in South England, although the firm noted that, using current technology, it could only recover 3-15% of the oil under the ground. Nevertheless, by 2030, that could mean that the company could produce 10-30% of the UK’s oil demand from within the Weald area, more than making up for dwindling oil production in Scotland’s North Sea. In general, recently developed concepts, techniques and technologies have provided cuttingedge data to help E&P companies identify and map out potential oil resources in a comprehensive and reliable manner, prompting more targeted investment, higher hit rates and higher production rates. Middle Eastern oil production has recovered quicker than expected despite ongoing geopolitical turmoil. Total output in Iraq has grown recently despite ISIS incursions, and production in Libya has also risen. If Iran and the West reach a nuclear agreement by July 2015, additional 4 supply — up to 500,000 barrels of oil per day — could gradually come onto an already oversupplied market. Crude Oil Production (billions of BOEs) On the demand side, while global demand for oil has been increasing, it has lagged the jump in supply. At this point, the current surplus is more than 1 million barrels per day, representing nearly 1% of the oil market. This surplus is expected to continue to grow to 1.4 million barrels per day this year. Reserves in the US are quickly filling up, with oil in storage at the highest level it has been in at least 80 years. Continued lackluster activity across the Eurozone, Japan and other regions has contributed to fairly weak global oil appetite. Private and public sector actors have been investing in and developing technologies that minimize the use of oil. Growth in demand has only averaged 630,000 barrels per day yearon-year, less than half of what analysts initially forecasted. Economists also note that the correlation between global GDP growth and oil demand has weakened. World Oil Demand (billions of BOEs) Oil prices have consequently plummeted, but in the face of these declines, OPEC has opted to increase production, with Saudi Arabia pumping oil at a near-record rate of 10.3 million barrels per day. Overall, OPEC boosted its average daily output to 31.49 million barrels in March, up 1.2 million barrels from February. Lincoln International D E A L R E A D E R Chemicals Experts posit that this decision may be a concerted strategy to retake global market share and squeeze out non-OPEC producers, many of which face higher costs of extraction. Yet, around half of non-OPEC oil production occurs at operating costs of less than $20 per barrel, leading some analysts to forecast that oil prices could hit $20 in the near-term. Other experts feel that OPEC is compelled to continue to produce, as it faces waning influence over the markets and its member states. Oil and Natural Gas Prices Given these dynamics, it is likely that the new normal for WTI spot prices will be in the $48-$68 per barrel range. In other words, this steep price decline is likely not just a shortterm market blip. What does cheaper oil mean for chemicals M&A? First, petrochemicals companies will aim to capture additional margin from reduced feedstock prices before competitive pressures push pricing back in line with costs. The correlation between oil prices and chemicals pricing is still developing. As a result, in-process deals may be delayed given misalignment between buyers and sellers on how to price the potentially temporary added value. Second, E&P firms may be tempted to go downstream to recapture margins, prompting vertical integration plays. At the same time, however, the volatility in oil prices has led to a good deal of uncertainty in the sector, which generally does not bode well for M&A activity. ■ Sources: International Energy Agency (IEA); US Energy Information Administration; public press; analyst reports www.lincolninternational.com Q1 2015 © 2015 Lincoln International LLC Q1 2015 Key Chemicals Market Statistics FIGURE 1: Chemicals Public Market Performance (Q1 2013 — Q1 2015) FIGURE 2: Total Enterprise Value / EBITDA Multiples (Q1 2014 — Q1 2015) 170% 16.0x 160% 14.1x 14.0x TEV / EBITDA 150% 140% 130% 120% 10.0x 12.3x 12.1x 12.0x 9.6x 9.4x 10.0x 12.3x 12.2x 11.8x 10.6x 9.8x 9.4x 9.5x 9.3x 9.2x 8.0x 110% 6.0x 100% 4.0x 90% Mar-14 LI Specialty Chemicals Index (1) LI Diversified Chemicals Index (2) S&P 500 Diversified (2) FIGURE 3: LI Index Chemical Industry — Revenues ($ in billions) Jun-14 Sep-14 Specialty Large-Cap (3) Dec-14 Mar-15 Specialty Small-Cap (4) FIGURE 4: LI Index Chemical Industry — EBITDA ($ in billions) $16.8 $15.5 $94.4 $87.5 $87.8 $87.6 $14.0 $13.7 $91.1 $91.0 $15.3 $12.9 $15.1 $13.2 $14.3 $12.2 $10.7 $87.3 $87.1 $86.5 $83.8 $83.4 $11.4 $9.1 $83.7 $83.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 FIGURE 5: LI Index Chemical Industry — EBITDA Margins FIGURE 6: LI Index Chemical Industry — Cash on Balance Sheet ($ in billions) 17.6% 15.7% 16.0% 15.3% 17.8% 16.9% 16.5% 15.2% $35.3 16.3% 14.1% 12.8% 13.8% 11.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 $26.2 $29.2 $27.6 $30.3 $32.0 $32.7 $31.5 $31.6 $28.1 $26.3 $27.3 $23.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 Note: (1) LI Specialty Chemicals Index: ALB, APD, ARG, CBM, CYT, ECL, FOE, FUL, GRA, IFF, NEU, OMG, PPG, RPM, SHLM, SIAL, SXT, VAL (2) LI Diversified Chemicals Index: AKZA, ASH, BAS, CBT, CE, CLX, DD, DOW, EMN, FMC, HUN, MON, OLN, POL (3) Large-cap group includes companies in the LI Specialty Chemicals Index with $4.0 billion or greater in market capitalization (4) Small-cap group includes companies in the LI Specialty Chemicals Index with less than $4.0 billion in market capitalization Sources: S&P Capital IQ; public filings; Lincoln intelligence 5 Lincoln International D E A L R E A D E R Chemicals www.lincolninternational.com Q1 2015 © 2015 Lincoln International LLC Highlighted Lincoln Chemicals Transaction Completed in Q1 2015 Lincoln Represents Caltius Equity Partners in the Sale of National Industrial Coatings Lincoln, a leading global mid-market investment bank, is pleased to announce that Caltius Equity Partners (“Caltius”) has sold National Industrial Coatings (“Nicoat” or the “Company”) to a private investment group. The terms of the transaction were not disclosed. Caltius is a closely held private equity firm that provides equity capital in the amounts of $10 to $30 million to develop and execute sound operational and growth strategies. The firm takes a long-range perspective on value creation, with an emphasis on building lasting partnerships with visionary and ethical entrepreneurs. It was founded in 1999 by Jim Upchurch and is based in Los Angeles, California. Nicoat is a premier formulator and manufacturer of coatings for high-performance graphic arts, packaging and other specialty coating applications. The Company’s comprehensive portfolio of high-quality, innovative coatings solutions includes a combination of water-based (“aqueous” or “WB”), ultraviolet (“UV”) and electron beam (“EB”) technologies. The technically superior coatings produced by Nicoat have a significant impact on the visual appeal and performance characteristics of customers’ products. Over its 32-year existence, the Company has earned a reputation for delivering premium, custom-formulated products critical to its customers. Lincoln acted as the exclusive financial advisor to Caltius and Nicoat, working closely with the management team and shareholders throughout the sale process. The deal closed in Q1 2015. New Lincoln Hire — Chemicals Director for German-Speaking Europe Matilda Schillo Joins Lincoln as Head of Chemicals in German-Speaking Europe Lincoln is delighted to announce that it has strengthened its Global Chemicals practice with the appointment of Matilda Schillo as Director and Head of Chemicals in German-speaking Europe, including Germany, Austria and Switzerland, based in its Frankfurt office. based in Frankfurt. At UBS, she was responsible for advising German industrial and private equity clients on buy- and sell-side transactions, carve-out situations and financing assignments. She was responsible for the coverage of German mid- and large -cap chemicals clients, covering all areas of M&A, acquisition financing, corporate lending and equities, with a focus on specialty chemicals. She has served German and international clients, including privately held entities, private equity-owned enterprises and publicly traded corporations. She began her career in 2001 in the Corporate Finance & Advisory Group of Dresdner Kleinwort Wasserstein, where she focused primarily on M&A transactions in the industrial sector in Germany and abroad. She is a graduate of the European Business School (EBS), OestrichWinkel, Germany. Since its launch in 2006, Lincoln’s Global Chemicals Group has completed over 45 transactions worldwide. As one of the largest groups in the middle market, it focuses on serving private equityowned, publicly traded and privately held companies. Matilda Schillo, a senior M&A investment banking specialist, brings substantial experience in chemicals. Prior to Lincoln, she served for seven years at UBS in its Investment Banking Division About Lincoln International Lincoln International specializes in M&A advisory services, debt advisory services, private capital raising and restructuring advice on mid-market transactions. Lincoln International also provides fairness opinions, valuations and pension advisory services on a wide range of transaction sizes. With 16 offices in the Americas, Asia and Europe, Lincoln has strong local knowledge and contacts in key global economies. The firm provides clients with senior-level attention, in-depth industry expertise and integrated resources. By being focused and independent, Lincoln serves its clients without conflicts of interest. More information about Lincoln can be obtained at www.lincolninternational.com. Officer Contacts in Lincoln’s Global Chemicals Group THE AMERICAS NEW YORK Federico G.M. Mennella Managing Director Global Head fmennella@ lincolninternational.com +1 (212) 277-810 ASIA SÃO PAULO James Sinclair Managing Director jsinclair@ lincolninternational.com +55 (11) 3078-7579 BEIJING Joe Chang Managing Director jchang@ lincolninternational.com +86 (10) 6535-0190 MUMBAI Aamit Joshi Managing Director Head — Asia ajoshi@ lincolninternational.com +91 (22) 3304-0669 TOKYO Tetsuya Fujii Managing Director tfujii@ lincolninternational.com +81 (3) 5549-7681 EUROPE AMSTERDAM Eric Wijs Managing Director e.wijs@ lincolninternational.nl +31 (20) 301-2266 6 FRANKFURT Matilda Schillo Director Head — DAS Region m.schillo@ lincolninternational.de +49 (69) 9710-5477 LONDON Mark Barrow Managing Director mbarrow@ lincolninternational.com +44 (020) 7632-5211 MADRID Ivan Marina Managing Director i.marina@ lincolninternational.es +34 (91) 129-4996 Lincoln International D E A L R E A D E R Chemicals MILAN Saverio Rondelli Managing Director s.rondelli@ lincolninternational.it +39 (02) 3030-0703 www.lincolninternational.com MOSCOW Andrei Joosten Managing Director a.joosten@ lincolninternational.ru +7 (495) 705-9970 Q1 2015 PARIS Jean-René Hartpence Managing Director jr.hartpence@ lincolninternational.fr +33 (1) 5353-1821 © 2015 Lincoln International LLC