M&A pressure on chems rises as cash balances grow - banker

15 November 2010 21:39  [Source: ICIS news]

NEW YORK (ICIS)--Chemical companies are under increasing pressure to make acquisitions as cash builds on their balance sheets, one investment banker said on Monday.

“The pressure to do deals has become even more acute in the past few months as strategic buyers have generated more cash,” said Telly Zachariades, partner at US-based investment bank The Valence Group.

“However, corporate buyers and private equity firms aren’t running around spending money like drunken sailors – they are being very disciplined,” he added.

Zachariades also noted that chemical companies were looking for “strategically relevant” businesses rather than assets that would take them into new sectors.

He said he expected more chemical deal volumes in 2011 as strategic players seek growth and private equity firms both look to spend money raised in recent funds and sell off assets that have been held for several years.

“Private equity firms are hungry for deals in their more recent funds, and also looking to exit from vintage funds since they were not able to do so during the financial crisis of 2008–2009,” said Zachariades.

To discuss issues facing the chemical industry go to ICIS connect
Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy


By: Joseph Chang
+1 713 525 2653



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly