Bain Capital considers sale of Italmatch Chemicals
Bain Capital is reportedly exploring the potential sale of Italmatch Chemicals SpA, a global speciality chemical manufacturer, in a deal that could value the company at EUR 1.5 billion (USD 1.56 billion), according to a Bloomberg report. Both Bain Capital, based in Boston, Massachusetts, U.S.A., and Italmatch declined to comment on the speculation.
Bain Capital, a leading global private equity firm, acquired Italmatch in 2018 from Ardian, a leading private investment firm based in Paris, France, for approximately EUR 700 million (USD 730.56 million). Since then, the firm has supported Italmatch in doubling its EBITDA and expanding its presence in high-growth markets such as Latin America and Asia. This potential sale aligns with Bain’s strategy of maximising value through strategic exits.
Sources familiar with the matter indicate that Bain Capital is working with financial advisers to evaluate various strategic options for Italmatch, including a possible sale, Bloomberg reported. While a formal sales process could begin later this year, the deliberations are still in their early stages. There is also the possibility that Bain may choose to retain ownership of Italmatch for a longer period, depending on market conditions and strategic priorities.
Founded in 1997 by its current CEO, Sergio Iorio, Italmatch Chemicals, based in Genoa, Italy, specialises in high-performance additives for water treatment, oil & gas, lubricants, plastics, and personal care industries. Under Bain Capital’s ownership, Italmatch has expanded significantly through organic growth, acquisitions, and a focus on sustainable and innovative solutions. The company operates 19 manufacturing facilities globally and generates approximately EUR 850 million (USD 886.56 million) in annual revenues.
At the time of Bain Capital’s acquisition, Italmatch generated EUR 400 million (USD 417.39 million) in annual revenue. In 2023, Dussur (Saudi Arabian Industrial Investments Company), a strategic Saudi industrial investment firm, acquired a minority stake (less than 20%) in Italmatch Chemicals. It injected EUR 100 million (USD 104.35 million) into Italmatch through a capital increase.
Last year, Italmatch acquired a majority stake in Alcolina, a Brazilian company specialising in water treatment for bioethanol, sugar production, and industrial applications. Founded 27 years ago, Alcolina operates two manufacturing sites in Brazil (Cravinhos and Rio Lago), employs 80 people, and reported a turnover of EUR 35 million (USD 36.51 million) in 2023.
In 2019, Italmatch acquired UK-based BWA Water Additives, a global provider of sustainable water management solutions for industries such as oil & gas, industrial water treatment, and desalination. BWA’s portfolio of biocides and specialised water treatment solutions complements Italmatch’s existing product range and technologies.
If the sale of Italmatch moves forward, it could attract interest from private equity firms, chemical companies, or strategic investors looking to expand their portfolios in the speciality chemicals sector. Italmatch’s robust product line and established global footprint make it an attractive asset, particularly in markets like water treatment and bioethanol, which are poised for growth amid increasing demand for sustainable solutions.
