M&A strategies for specialty-chemical corporates | Page 4

Strategic Rationale | Deal Frequency & Deal Volume | Strategic Groups

Acquisition and divestment are driven by strategic rationale

Generally , acquisitions and divestments can be defined by their underlying strategic rationale : entering a new strategic area , enhancing a portfolio , and strengthening a core business or value-unlocking , sub-segment , and other divestments .
ACQUISITION
DIVESTMENT
NEW STRATEGIC AREA
ENHANCING M & A
CORE M & A
VALUE-UNLOCK- ING DIVESTMENT
SUB-SEGMENT DIVESTMENT
OTHER DIVESTMENT
• New business field such as a new product , service or technology
• New business model
• Coverage of untapped areas
• Increase in market share
• Improvement of regional footprints
• Generation of cost and revenue synergies
• Strengthening of current marketing position
DESCRIPTION
• Transformational divestments of whole business unit
• Transformational divestments of business segment
• Divestments of only parts of a business unit
• Divestments of a brand
• Ending a joint venture or cooperation with the sale of assets and / or shares
• Creating a standalone company
CRODA
IONPHASE
Deal size : € 24m Date : 06 / 18
DUPONT
LAIRD
Deal size : € 2,050m Date : 07 / 21
LANXESS EMERALD
PERFORMANCE
Deal size : € 1,050m
Date : 08 / 21
CRODA CINVEN /
BAIN CAPITAL
Deal size : € 4,200m
Date : 02 / 21
CRODA
CARGILL
Deal size : € 900m Date : 12 / 21
DUPONT
GYRUS
Deal size : n / a Date : 02 / 19
SHARE 1
~ 16 % ~ 69 % ~ 15 % ~ 40 % ~ 41 % ~ 18 %
[ 1 ] Share based on number of deals between 2016 and 2021 Source : goetzpartners
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