Chemicals Update | Fall 2019 - Houlihan Lokey

CHEMICALS UPDATEFall 2019

2

Introduction

Dear Clients and Friends,

Houlihan Lokey is pleased to present its Chemicals Fall 2019 Industry Update.

In this issue, we have included relevant news stories, recent M&A transaction announcements, a public markets overview, and other industry insights to help you stay ahead in this evolving industry. We hope you find this quarterly update to be informative and that it serves as a valuable resource to you in staying abreast of the market. If there is additional content you would find useful for future updates, please don’t hesitate to call or email us with your suggestions. We look forward to staying in touch with you.

Regards,

Chemicals Group Contacts

Financial and Valuation Advisory

Corporate Finance

Mike GiffinManaging [email protected]

Leland HarrsGlobal Head of [email protected]

Christopher [email protected]

Harrison DavisAssociate [email protected]

Martin BastianHead of Chemicals, [email protected]+49 (0) 69 1700 9919

Steve WangSenior Vice [email protected]

Zachary MuellerFinancial [email protected]

mailto:[email protected]







Corporate Finance Financial Restructuring Financial and Valuation Advisory

No. 1 U.S. M&A Advisor

Top 10 Global M&A Advisor

Leading Capital Markets Advisor

No. 1 Global M&A Fairness Opinion Advisor Over the Past 20 Years

1,000+ Annual Valuation Engagements

No. 1 Global Restructuring Advisor

1,000+ Transactions Completed Valued at More Than $2.5 Trillion Collectively

Houlihan Lokey is the trusted advisor to more top decision-makers than any other independent global investment bank.

3

Selected Transactions

2018 M&A Advisory Rankings All U.S. Transactions

Adv isor Deals

1 Houlihan Lokey 207

2 Goldman Sachs & Co 197

3 JP Morgan 154

4 Morgan Stanley 135

5 Jefferies LLC 117Source: Thomson Reuters

2018 Global Distressed Debt & BankruptcyRestructuring Rankings

Adv isor Deals

1 Houlihan Lokey 63

2 PJT Partners Inc. 45

3* Moelis & Co. 36

3* Lazard 36

3* Rothschild & Co. 36Source: Thomson Reuters* Denotes tie

1999 to 2018 Global M&A Fairness Advisory Rankings

Adv isor Deals

1 Houlihan Lokey 1,073

2 JP Morgan 971

3 Duff & Phelps 728

4 Bank of America Merrill Lynch 660

5 Morgan Stanley 659Source: Thomson Reuters. Announced or completed transactions.

Tombstones included herein represent transactions closed from 2012 forward.

has acquired

Buyside Advisor

a portfolio company of

has been acquired by

Sellside Advisor

has sold certain assets to

Fairness Opinion

has completed a merger with the chemicals business of PPG in a Reverse Morris Trust transaction

Financial Advisor

has completed the spin-off of

Financial Opinion



Sellside Advisor


Financial Opinion

has acquired

from

Arsenal Capital Partners

Buyside Advisor


Sellside Advisor



Sellside Advisor

Indorama Ventures to Acquire Huntsman’s World-Class Integrated Oxides and Derivatives Businesses (IndoramaVentures.com, August 8, 2019)

“Huntsman is a global leader in integrated Oxides (EOs) and Derivatives (EOD), operating a large, well-invested site in US Gulf Coast (USGC) as well as in India and Australia.

This acquisition reinforces [Indorama Venture]’s Integrated EOs and Specialty Chemical segment’s growth trajectory and includes sought after value-added EODs and Propylene Oxide Derivatives.

The transaction will broaden [Indorama Venture]’s expertise of operating USGC Integrated Oxides facilities through operational excellence, global scale, differentiated formulations and technologies.

The purchase price is based on an enterprise value of US$2.0 billion and up to US$76 million in pension obligations, which corresponds to an EV/EBITDA multiple of 5.7. The deal accelerates [Indorama Venture]’s ability to achieve its stated goal to double its core EBITDA by 2023.

This acquisition is a profitable, resilient and growth business and is not competing in the otherwise crowded olefins space. It comes at less than 50% of its replacement cost. It is a game changing acquisition for [Indorama Ventures], its largest ever and one of the biggest by a Thai company in the last decade.

The deal is earnings accretive within the first year of full operations. Synergy benefits will further boost EBITDA contribution from these assets by additional US$100 million annually by 2022. On a proforma basis, this acquisition adds 25% to [Indorama Venture]’s 2018 core EBITDA.”

Synthomer to Buy Omnova in $824 million Deal (Reuters.com, July 2, 2019)

“Polymer maker Synthomer Plc said on Wednesday it has agreed to buy Omnova Solutions Inc. for an enterprise value of $824 million in a bid to strengthen its global position.

London-based Synthomer is offering Beachwood, Ohio-headquartered Omnova $10.15 for each share, a premium of 58% to Omnova’s closing price on Tuesday.

Shares of Synthomer fell 5% to 352.4 pence, making them the top loser on the FTSE 250 index. Omnova shares surged 55 percent on the New York Stock Exchange to trade at $9.96.

Acquiring Omnova will help Synthomer bolster its footprint in Europe and Asia and penetrate into China, Synthomer said in a statement.

The deal will be financed through a rights issue of up to $257 million and is likely to be completed by late 2019 or early 2020.

Upon completion of the deal, Synthomer expects it will add to its earnings in the first financial year and projects an annual pre-tax cost savings of $29.6 million by the end of the third year.”

Selected Recent M&A News

4

Announcement Concerning the Acquisition of Shares in Nufarm’s Group Companies in South America (CapitalIQ.com, September 30, 2019)

“Sumitomo Chemical Company, Limited (‘Sumitomo Chemical’) announced today that it has agreed with Nufarm Ltd. (‘Nufarm’), the leading crop protection company in Australia, to acquire all shares of Nufarm’s four South American subsidiaries in Brazil, Argentina, Chile and Colombia, through Sumitomo Chemical's fully owned subsidiaries in the region, i.e. Sumitomo Chemical Brazil for the Brazilian subsidiary, and Sumitomo Chemical Chile for the others.

The acquisition is due to be completed upon approval by Nufarm’s shareholders’ meeting scheduled for December this year, subject to clearance by relevant regulatory authorities.

As a result of the acquisition announced this time, the crop protection revenue of Sumitomo Chemical in South America will triple, surpassing its revenue in North America. More importantly, the acquisition will give a powerful impetus to the Company's ongoing projects to establish a network of its global footprints (Sumitomo Chemical’s own distribution networks).

Furthermore, the acquisition will provide Sumitomo Chemical with an opportunity to pursue the integration of business operations, from development through formulation to distribution because a formulation plant the Company will obtain as part of the acquisition can be managed and operated closely with its existing R&D facility and its adjoining experimental field.

The acquisition carried an estimated purchase price of 70 billion JPY and represents a 100% ownership stake in the four South American Nufarm subsidiaries.”

DIC to Acquire BASF’s Global Pigments Business (BASF.com, August 29, 2019)

“BASF and the fine chemical company DIC have reached an agreement on the acquisition of BASF’s global pigments business. The purchase price on a cash and debt-free basis is €1.15 billion. The transaction is expected to close in the fourth quarter of 2020. The divestiture is subject to the approval of the relevant competition authorities.

‘We have outlined a clear growth path for DIC with the target to increase our sales to 1 trillion yen, i.e. approximately €8 billion, by 2025. In this context, BASF’s pigments portfolio is an important strategic addition in meeting our goals more expeditiously. It will allow us to expand our position as one of the leading pigment suppliers globally and offer our customers even more versatile solutions,’ Kaoru Ino, President and Chief Executive Officer of DIC comments on the agreement reached.

BASF’s pigments business with around 2,600 employees globally generated sales of approximately €1 billion in 2018.”

Selected Recent M&A News (cont.)

5

6

Chemical M&A Activity Continues to Be HighStrategic Buyer Median Strategic Buyer 10.3xFinancial Buyer Median Financial Buyer 11.2x

2/16 775 Allnex Nuplex3/16 11,300 Sherwin-Williams Valspar4/16 684 Eurazeo Novacap (Ardian)5/16 3,800 Evonik Performance Materials (Air Products)5/16 700 Reichold LLC Polynt (InvestIndustrial)6/16 3,200 BASF Chemetall (Albemarle)7/16 485 Arkema Den Braven (Egeria)9/16 454 Black Diamond Vertellus Specialties9/16 2,400 Lanxess Chemtura10/16 3,200 Carlyle Atotech (Total)12/16 1,000 Blackstone Acetow (Solvay)12/16 630 Evonik Silica Business (J.M. Huber)12/16 880 Imerys Kerneos (Astorg Partners)12/16 5,500 Lonza Capsugel (KKR)12/16 900 Chemtrade Canexus1/17 980 Lone Star Funds Arclin3/17 1,050 Henkel Darex Packaging (GCP Applied Technologies)3/17 3,200 SUEZ and CDPQ GE Water (General Electric Company)3/17 3,200 Bain Capital Diversey (Sealed Air)4/17 1,415 Quaker Chemical Houghton International4/17 420 Axalta Coating North American Industrial Wood Coatings (Valspar)4/17 660 Ashland Pharmachem Laboratories4/17 495 KMG Chemicals, Inc. Flowchem (Arsenal Capital Partners)5/17 10,790 Clariant AG Huntsman6/17 375 Firmenich Agilex Frangrances (MidOcean Partners)7/17 405 Eurazeo Iberchem8/17 1,325 Genesis Energy Alkali Chemicals (Tronox)9/17 68,902 Dow Chemical DuPont9/17 1,575 H.B. Fuller Royal Adhesives & Sealants (American Securities)9/17 1,600 BASF Polyamide Business (Solvay)9/17 900 H.I.G. Capital Vantage Specialty Chemicals (The Jordan)9/17 1,333 Kuraray Calgon Carbon Corp.10/17 670 Carlisle Companies Accella Performance Materials (Arsenal Capital)10/17 5,900 BASF Seed and Non-Selective Herbicide (Bayer)12/17 1,000 SK Capital ICL: Fire Safety and Oil Additives 12/17 416 W.R. Grace Polyolefin Catalysts (Albermarle)2/18 2,250 LyondellBasell A. Schulman3/18 1,812 Givaudan Naturex3/18 750 Silica EP Minerals (Golden Gate)3/18 10,100 Carlyle, GIC AkzoNobel: Specialty Chemicals Business5/18 6,882 IFF Frutarom6/18 2,000 EQT and PSP

InvestmentsAzelis (Apax Partners)

6/18 700 Bain Capital Italmatch (Ardian)6/18 600 Elementis Mondo Minerals (Advent)7/18 5,000 Taiyo Nippon Sanso European Industrial Gases (Praxair)7/18 3,300 CVC/Messer Group Linde7/18 4,200 UPL/ADIA and TPG Arysta LifeSciences7/18 425 Cambrex Halo Pharma8/18 1,600 Cabot Microelectronics KMG Chemicals9/18 3,100 SJL, KCC, Wonik Momentive Performance Materials9/18 2,000 US Univar Nexeo9/18 1,700 Clearlake Capital Unifrax (American Securities)11/18 630 Platinum Equity Lonza's Water Care Business11/18 625 Evonik PeroxyChem (One Equity Partners)11/18 655 HollyFrontier Sonneborn (One Equity Partners)11/18 1,100 INEOS Ashland's Composites and BDO Business11/18 800 Keppel Infrastructure Ixom (Blackstone)12/18 675 Ingevity Perstorp's Capa unit1/19 2,550 Sika Parex (CVC Fund V)1/19 900 Symrise IDF, ADF2/19 150 Royal DSM Yantai Andre Pectin Co. Ltd. (46% stake)3/19 3,000 Advent Evonik MMA3/19 6,500 Merck Versum4/19 3,675 Parker Hannifin LORD Corp.5/19 570 Arkema ArrMaz7/19 785 Synthomer USA OMNOVA Solutions8/19 2,076 Indorama Ventures Integrated Oxides Assets of Huntsman9/19 648 Sumitomo Chemical Nufarm Indústria Química e Farmacêutica S/A

7.8x5.7x

10.6x10.8x

18.4x13.7x

8.5x13.0x

17.6x13.1x

11.3x8.6x

7.3x9.9x10.4x

9.5x12.6x

10.2x8.7x

14.5x15.7x

9.9x9.2x

12.5x13.1x

10.0x14.5x

20.3x10.0x

12.5x29.3x

11.0x12.8x

7.5x15.3x

11.5x16.5x

9.5x7.0x

11.4x12.3x

8.0x16.2x

15.0x11.0x11.5x

10.5x7.6x

11.8x9.1x

12.5x14.7x

7.0x9.3x

15.1x8.8x

10.5x7.0x

11.9x9.8x

7.4x11.0x

15.8x7.5x

15.8x7.5x

16.2x8.7x

2018

2017

2016

2019

TargetBuyerEV $Date EV/EBITDA

Med

ian:

10.

5x

Med

ian:

7.5

x

Med

ian:

11.

7x

Med

ian:

9.1

x

Med

ian:

11.

1x

Med

ian:

10.

0x

Med

ian:

13.

0x

Med

ian:

9.2

x

Sources: Company information, MergerMarket

Public Markets Overview

Median TEV/EBITDA Multiples

Source: Bloomberg and S&P Capital IQ

Stock Price Index

7

7.8x

10.5x

12.7x11.9x

7.7x

9.6x

11.0x 10.6x

0.0x

5.0x

10.0x

15.0x

Basic/Diversified Specialty Large-Cap Specialty Mid-Cap Chemicals Distribution

Sep 2018 Sep 2019

60.0%

70.0%

80.0%

90.0%

100.0%

110.0%

Sep-18 Dec-18 Mar-19 Jun-19 Sep-19

Basic/Diversified Specialty Large-CapSpecialty Mid-Cap Chemicals DistributionS&P 500 S&P 500 Chemicals IndexSTOXX Europe 600 STOXX Europe 600 Chemicals

Selected Chemical Inputs (weekly index prices)

Cushing Crude Oil (WTI) U.S. Gulf Ethylene (FD)

U.S. Gulf Propylene (FD)

Sources: Bloomberg, Polymer Update

U.S. Gulf Butadiene (CIF)

8

($ per barrel) ($ per pound)

($ per pound) ($ per pound)

$40

$45

$50

$55

$60

$65

$70

$75

$80


$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

$0.45

$0.50

Sep-18 Dec-18 Mar-19 Jun-19 Sep-19$0.35

$0.40

$0.45

$0.50

$0.55

$0.60

$0.65

$0.70

$0.75


$0.10

$0.12

$0.14

$0.16

$0.18

$0.20

$0.22

$0.24

$0.26

$0.28


Selected Chemical Inputs (weekly index prices, cont.)

Sources: Bloomberg, Polymer Update

U.S. Gulf Benzene (FOB) U.S. Mixed Xylene (FOB)

9

($ per gallon) ($ per gallon)

Natural Gas (Henry Hub)($ per million BTU)

U.S. Toluene($ per gallon)

$1.50

$1.70

$1.90

$2.10

$2.30

$2.50

$2.70

$2.90

$3.10

$3.30


$1.90

$2.10

$2.30

$2.50

$2.70

$2.90

$3.10

$3.30


$1.80

$2.30

$2.80

$3.30

$3.80

$4.30

$4.80

$5.30


$2.10

$2.30

$2.50

$2.70

$2.90

$3.10


Selected Macroeconomic Data

U.S. Total Monthly Automotive Sales U.S. Privately Owned Housing Units Started

10

U.S. QoQ Real GDP Growth U.S. Consumer Price Index

Source: Federal Reserve Bank of St. Louis

(millions) (thousands)

(% Change From Preceding Period)

16.4

16.6

16.8

17.0

17.2

17.4

17.6

17.8

18.0

18.2


249

250

251

252

253

254

255

256

257


1,100

1,150

1,200

1,250

1,300

1,350

1,400


0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Q32015

Q12016

Q32016

Q12017

Q32017

Q12018

Q32018

Q12019

Q32019

28

29

30

31

32

33

34

Sep-16 Sep-17 Sep-18 Sep-19

Selected Macroeconomic Data (cont.)

Source: Association of American Railroads

11

U.S. Average Weekly Chemical Railcar Loadings

(thousands)

U.S. Chemicals Activity Barometer Index

Source: American Chemistry Council, Bloomberg

102

104

106

108

110

112

114

116

118

120

122

124

Sep-15 Sep-16 Sep-17 Sep-18 Sep-19

(as of 9/30/2019, $ in millions, except per-share prices)

LTM 9/30/2019 Enterprise Value/

Stock Stock Performance (% Change) Equity Enterprise Gross EBITDA LTM LTM

Company Name Ticker Price 1 Month 3 Month 1 Year Value Value Revenue Margin EBITDA Margin Revenue EBITDABASF SE DB:BAS $69.85 5.3% -4.0% -21.5% $64,216.4 $85,710.2 $67,770.1 27.4% $7,475.7 11.0% 1.26x 11.5x

Bayer AG DB:BAYN $71.07 -4.5% 2.5% -19.6% $65,779.9 $108,618.2 $50,151.6 60.4% $5,221.9 10.4% 2.17x NMF

Celanese Corp. NYSE:CE $122.29 7.9% 13.4% 7.3% $15,132.2 $19,019.2 $6,554.0 26.1% $1,361.0 20.8% 2.90x 14.0x

Covestro AG DB:1COV $49.61 9.2% -2.6% -39.1% $9,044.6 $10,823.0 $13,978.8 22.7% $1,718.5 12.3% 0.77x 6.3x

[1] Dow Inc. NYSE:DOW $47.65 11.8% -3.4% NA $35,414.1 $53,947.1 $44,691.0 14.8% $6,705.0 15.0% 1.21x 8.0x

Huntsman Corp. NYSE:HUN $23.26 16.8% 13.8% -14.6% $5,337.5 $8,081.5 $8,736.0 19.3% $1,048.0 12.0% 0.93x 7.7x

LANXESS AG XTRA:LXS $61.06 1.5% 2.7% -16.7% $5,339.7 $7,339.5 $7,827.9 25.3% $1,061.0 13.6% 0.94x 6.9x

LyondellBasell Industries NV NYSE:LYB $89.47 15.6% 3.9% -12.7% $29,994.4 $40,951.4 $35,424.0 15.4% $5,542.0 15.6% 1.16x 7.4x

Methanex Corp. TSX:MX $35.51 9.4% -21.9% -55.0% $2,705.7 $4,820.5 $3,102.4 21.1% $582.8 18.8% 1.55x 8.3x

Olin Corp. NYSE:OLN $18.72 10.2% -14.6% -27.1% $3,075.7 $6,490.5 $6,357.9 12.5% $1,002.5 15.8% 1.02x 6.5x

The Chemours Co. NYSE:CC $14.94 5.4% -37.8% -62.1% $2,442.4 $6,365.4 $5,637.0 23.3% $916.0 16.2% 1.13x 6.9x

Westlake Chemical Corp. NYSE:WLK $65.52 11.8% -5.7% -21.2% $8,404.2 $11,615.2 $8,230.0 16.6% $1,462.0 17.8% 1.41x 7.9x

Median 9.3% -3.0% -21.2% $8,483.0 21.9% $1,411.5 15.3% 1.2x 7.7x

Mean 8.4% -4.5% -25.7% $21,538.4 23.7% $2,841.4 14.9% 1.4x 8.3x

Selected Public Comparables

Basic/Diversified

Source: S&P Capital IQ 12

Specialty Large-Cap (Greater Than $5 Billion EV)

1. Historical financial information presented pro forma to give effect to the 2019 Dow-Dupont-Corteva separation.LTM refers to last 12 months.NA refers to not available.

NMF refers to not meaningful figure.




Company Name Ticker Price 1 Month 3 Month 1 Year Value Value Revenue Margin EBITDA Margin Revenue EBITDAAlbemarle Corp. NYSE:ALB $69.52 12.6% -1.3% -30.3% $7,368.2 $9,158.9 $3,518.6 35.5% $954.9 27.1% 2.60x 9.6x

Arkema S.A. ENXTPA:AKE $93.25 6.3% 0.2% -24.8% $7,081.4 $8,564.3 $9,695.8 21.6% $1,533.1 15.8% 0.88x 5.6x

Ashland Global Holdings Inc. NYSE:ASH $77.05 5.2% -3.7% -8.1% $4,663.3 $7,138.3 $3,705.0 28.3% $633.0 17.1% 1.93x 11.3x

Clariant AG SWX:CLN $19.47 5.7% -4.2% -25.6% $6,420.4 $8,357.7 $6,792.4 29.3% $818.8 12.1% 1.23x 10.2x

[1] Corteva, Inc. NYSE:CTVA $28.00 -4.5% -5.3% NA $20,969.0 $21,898.0 $13,678.0 32.9% $2,662.0 19.5% 1.60x 8.2x

[1] DuPont de Nemours, Inc. NYSE:DD $71.31 5.0% -5.0% NMF $53,160.3 $69,828.3 $21,765.0 32.9% $4,894.0 22.5% 3.21x 14.3x

Eastman Chemical Co. NYSE:EMN $73.83 12.9% -5.1% -22.9% $10,114.3 $16,561.3 $9,444.0 23.4% $1,899.0 20.1% 1.75x 8.7x

Ecolab Inc. NYSE:ECL $198.04 -4.0% 0.3% 26.3% $56,986.4 $64,551.1 $14,843.2 41.4% $3,276.6 22.1% 4.35x 19.7x

Evonik Industries AG DB:EVK $24.77 -2.7% -15.0% -30.8% $11,488.6 $15,976.6 $16,182.5 29.2% $2,545.0 15.7% 0.99x 6.3x

FMC Corp. NYSE:FMC $87.68 1.6% 5.7% 0.6% $11,436.3 $14,860.3 $4,954.4 44.9% $1,352.1 27.3% 3.00x 11.0x

Johnson Matthey plc LSE:JMAT $37.60 6.0% -11.1% -19.1% $7,222.6 $8,276.7 $13,992.9 9.5% $925.9 6.6% 0.59x 8.9x

Koninklijke DSM NV ENXTAM:DSM $120.38 -3.2% -2.7% 13.6% $20,645.7 $21,341.4 $9,885.5 35.3% $1,600.7 16.2% 2.16x 13.3x

Solvay S.A. ENXTBR:SOLB $103.59 2.7% -0.1% -22.8% $10,685.4 $15,201.8 $12,372.7 26.4% $2,257.1 18.2% 1.23x 6.7x

W. R. Grace & Co. NYSE:GRA $66.76 -1.4% -12.3% -6.6% $4,455.3 $6,316.6 $1,973.6 40.0% $437.8 22.2% 3.20x 14.4x

Wacker Chemie AG XTRA:WCH $65.75 -15.6% -17.0% -47.7% $3,266.4 $4,398.3 $5,409.1 13.3% $608.3 11.2% 0.81x 7.2x

Median 2.7% -4.2% -22.8% $9,695.8 29.3% $1,533.1 18.2% 1.8x 9.6x

Mean 1.8% -5.1% -15.2% $9,880.8 29.6% $1,759.9 18.2% 1.9x 10.4x

Selected Public Comparables (cont.)

Chemicals Distribution

Specialty Mid-Cap (Less Than $5 Billion EV)

Source: S&P Capital IQ 13LTM refers to last 12 months.




Company Name Ticker Price 1 Month 3 Month 1 Year Value Value Revenue Margin EBITDA Margin Revenue EBITDABalchem Corp. NASDAQGS:BCPC $99.19 11.7% 1.3% -11.5% $3,209.5 $3,405.3 $640.7 32.5% $153.5 24.0% 5.31x 22.2x

Elementis plc LSE:ELM $1.82 -0.4% 2.8% -48.1% $1,054.2 $1,594.6 $850.5 36.9% $196.6 23.1% 1.87x 8.1x

Ferro Corp. NYSE:FOE $11.86 16.4% -24.4% -48.9% $971.7 $1,837.9 $1,542.7 26.9% $169.3 11.0% 1.19x 10.9x

Fuchs Petrolub SE DB:FPE3 $37.49 7.3% -5.7% -33.0% $5,138.8 $5,079.9 $2,798.0 34.2% $425.3 15.2% 1.82x 11.9x

GCP Applied Technologies Inc. NYSE:GCP $19.25 9.7% -16.1% -27.5% $1,398.9 $1,507.0 $1,031.3 37.5% $132.2 12.8% 1.46x 11.4x

H.B. Fuller Co. NYSE:FUL $46.56 9.3% -0.7% -9.9% $2,373.7 $4,376.4 $2,926.3 28.2% $405.5 13.9% 1.50x 10.8x

Ingevity Corp. NYSE:NGVT $84.84 11.4% -17.8% -16.7% $3,551.2 $4,946.4 $1,268.1 37.6% $374.7 29.5% 3.90x 13.2x

Innophos Holdings, Inc. NASDAQGS:IPHS $32.46 15.6% 15.0% -26.9% $634.3 $987.9 $758.5 19.1% $109.8 14.5% 1.30x 9.0x

Innospec Inc. NASDAQGS:IOSP $89.14 7.2% -3.6% 16.1% $2,182.7 $2,273.9 $1,517.6 31.1% $207.0 13.6% 1.50x 11.0x

Koppers Holdings Inc. NYSE:KOP $29.21 10.2% 0.1% -6.2% $604.2 $1,695.4 $1,805.0 19.0% $188.7 10.5% 0.94x 9.0x

NewMarket Corp. NYSE:NEU $472.09 -0.6% 18.0% 16.4% $5,281.8 $5,953.1 $2,194.2 28.6% $451.5 20.6% 2.71x 13.2x

OMNOVA Solutions Inc. NYSE:OMN $10.07 0.2% 56.9% 2.2% $451.7 $742.0 $758.3 23.2% $67.3 8.9% 0.98x 11.0x

PQ Group Holdings Inc. NYSE:PQG $15.94 11.5% -2.9% -8.8% $2,169.9 $4,264.7 $1,594.7 24.9% $366.4 23.0% 2.67x 11.6x

Quaker Chemical Corp. NYSE:KWR $158.14 -0.5% -22.4% -21.8% $2,803.9 $2,755.8 $953.7 35.8% $134.0 14.1% 2.89x 20.6x

Stepan Co. NYSE:SCL $97.06 1.8% 5.5% 11.6% $2,189.4 $2,186.2 $1,880.4 17.6% $216.9 11.5% 1.16x 10.1x

Median 9.3% -0.7% -11.5% $1,517.6 28.6% $196.6 14.1% 1.5x 11.0x

Mean 7.4% 0.4% -14.2% $1,501.3 28.9% $239.9 16.4% 2.1x 12.3x




Company Name Ticker Price 1 Month 3 Month 1 Year Value Value Revenue Margin EBITDA Margin Revenue EBITDABrenntag AG XTRA:BNR $48.41 0.4% -1.8% -21.6% $7,479.9 $10,056.9 $13,988.6 21.3% $956.4 6.8% 0.72x 10.5x

Hawkins, Inc. NASDAQGS:HWKN $42.50 -4.2% -2.1% 2.5% $453.3 $542.2 $548.6 18.0% $61.1 11.1% 0.99x 8.9x

IMCD NV ENXTAM:IMCD $73.98 5.4% -19.3% -5.0% $3,880.1 $4,625.4 $2,999.9 22.6% $254.6 8.5% 1.54x 18.2x

Univar Solutions Inc. NYSE:UNVR $20.76 7.3% -5.8% -32.3% $3,500.5 $6,734.3 $9,103.1 22.8% $633.0 7.0% 0.74x 10.6x

Median 2.9% -4.0% -13.3% $6,051.5 21.9% $443.8 7.7% 0.9x 10.6x

Mean 2.2% -7.3% -14.1% $6,660.0 21.2% $476.3 8.4% 1.0x 12.0x

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Chemicals Update | Fall 2019 - Houlihan Lokey