Big opportunities await buyers that are looking for deals in the chemical distribution sector. Dramatic shifts in the $470 billion U.S. chemical industry, particularly in the highly fragmented distribution sector, have sparked a rush of acquisition activity — with the top 10 distributors executing more than 40 mergers in the past five years alone. Furthermore, due to the increased use of distributors, growth projections for this sector have ramped up beyond those of the end chemical market, with specialty chemical distribution enjoying even more robust growth projections (5.0 – 5.5% CAGR 2017 – 2022). Most companies looking for attractive additions to their portfolio of chemical distributors are pursuing one of three expansion paths: Geographic, Product or End Market.
Source: Capital IQ, William Blair, Company press releases
To review the full report please download, “Chemical Distribution M&A – 2018 Overview”