CORPORATE FINANCE IN EUROPE
M&A CHEMICAL INDUSTRY
Istanbul April 1 Yapkim
Index CFIE
This presentation contains the following items:
Background CFIE
Objectives CFIE
International approach
Country focus
Industry Focus
Team CFIE
Buyer search
Process Overview
Customer profiles
Characteristics Distributors
Trends chemical distribution
References
Background CFIE
Funded in 2001 after team members previously gained M&A and CF experience at investment banks and multinationals
View of GAP in European cross border M&A support for middle-sized SME’s (20 – 400 employees)
International experience and background team members
Flexible and pragmatic structure with high quality (investment banking) M&A services
CFIE team has long experience in the European M&A market
OBJECTIVES CFIE Help business owners sell their business in Europe (retirement or other reasons)
Create liquidity (cash) for business owners
Bring companies from different countries together that create synergy hence improving the quality of businesses
Make the M&A market of European economies more efficient
Fill the GAP left by large investment banks who don’t focus on middle-sized SME’s
CFIE team helps European business owners sell their business and create liquidity
International (European & US) approach
CFIE’s team uses it’s international background:
Team members live and work in various countries
Strategic partnership with Vercor Advisor (US) and further good
chemical contacts in the US
Business is internationalizing
Strategic International focus
Country Focus Western Europe: Netherlands, Belgium, France, core basis of team
Central Europe: Switzerland, Austria, Germany, local people on the ground
Southern Europe: Spain, Italy, working experience and local people
Eastern Europe: Projects worked on in Hungary and Romania
Turkey: A good network via local partners
USA: Strategic partner Vercor advisor
CFIE team has a pan European focus and local people
Industries CFIE
Focus on CFIE’s core industries:
Chemical (distribution companies)
Plastics
Transportation / Forwarding / Logistics
Specialization on chemical and plastics industry
Chemical Team CFIECFIE HAS 19 PEOPLE ALL ACROSS EUROPE OF WHICH 6 FOCUS ON THE CHEMICAL MARKET
Peter Schouten (NL): Background and M&A expert in the chemical industry
Martin Schor (NL): Consultant in the chemical industry.
Ralph Arnold (GE): Background in Chemistry and M&A expert.
Bruno Zaza (SP): Analyst at Salomon Brothers Chemical M&A
Govert Derks (NL): Financial background
Barkan Baybogan (TU): M&A experience in the Turkish market
CFIE team has strong background in chemical industry
Chemical Team CFIE: Peter Schouten
CFIE team has strong background in chemical industry
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Peter Schouten’s portfolio as finance specialist comprised the international chemicals sector and he was also directly involved in the stock-market flotation of Pirelli, Ares Serono, Holland Chemical International (HCI) and the acquisition of Superfos by HCI.
Peter was active as M & A advisor to the chemical distirbution companies such as Stokvis Chemicaliën (acquired by Caldic) and De Monchy International
Peter has a background in chemistry and has been active for many years in the chemical and oil industry, as well as in banking, where he was employed as a senior financial analyst with an emphasis on the European Chemical sector. After having gained considerable experience in the field of M&A as Associate Director of Corporate Finance at Rabo Securities in 2004, he embarked on his career as an independent advisor in M&A specialised in supervising transactions focusing on the chemical sector.
Chemical Team CFIE: Martin Schor
CFIE team has strong background in chemical industry
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Martin Schor has been commercially and strategically active for the past 15 years on behalf of major players on the German market such as BASF and Brenntag. Acting on behalf of these concerns he was directly involved in national and international takeovers such as the acquisitions by BASF of Inmont, Polysar and Mobil Chemie (Tiel)
Martin is a business economist and has followed a number of postgraduate courses in marketing and sales management. He has held a number of management positions in the commercial sector, both in the chemical and the oil industry, as well as in international wholesale. He has had many years of experience in the area of consultancy as a business controller and strategic adviser, focusing on restructuring, mergers and take-overs.
Since 2000 he has been active as a management consultant focusing on the chemical and plastics industry.
Chemical Team CFIE: Ralph Arnold
CFIE team has strong background in chemical industry
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Ralph Arnold. Investment Banker in New York and Frankfurt. Chemistry and Chemical (distribution) background. M&A deal experience (head of M&A, Investment Banker).
Strategy, Organization, pharmaceuticals and distribution
MBA – Columbia University (New York)
Head of M&A Aventis / Hoechst (FFM). Project Manager for Hoechst in the merger with Rhone-Poulenc to Aventis. (Düsseldorf). Managing Innovation. Director of Bayer Innovation. VC/PE Entity of Bayer (Leverkusen)
Strong project process experience and strong financial background . Key Differentiators industry background and experience.
Chemical Team CFIE: Govert Derks
CFIE team has strong background in chemical industry
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Govert Derks has more than 10 years experience in Financial Management and international M&A. During his career Govert worked on many international M&A related projects in the Netherlands, the UK, the USA, Germany, France, Spain, Ireland, Italy, Hungary, Rumania and Turkey.
Govert graduated in International Economic Studies (Macro Economics) from the University in Maastricht. During this study he spend one year the University of Regensburg. Further, Govert has a degree in Business Economics from the Economic Business School in Enschede, the Netherlands.
Govert started his career with General Electric Capital in London performing various international assignments (US, Germany and the UK) in the financial area.
Today Govert is the Managing Director of a Corporate Finance in Europe in the Netherlands helping European business owners sell their companies to European buyers.
Chemical Team CFIE: Barkan Baybogan
CFIE team has strong background in chemical industry
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Barkan has large M&A experience in Turkey. Barkan’s main areas are Corporate Lending, M&A, Private Equity and Project Finance.
Having a corporate & investment banking experience with solid financial economics background, involved in corporate lending, project in Economics from Marmara University. Strengthened academic knowledge by postgraduate education in Johnson & Wales University and University of South Florida.
Barkan worked with the Industrial Development Bank of Turkey, TEB (BNP Paribas), HSBC, Abank, Denizbank (Dexia) and MNG Bank.
Buyer Search
CFIE’s team is specialized in finding the right buyers:
Direct personal contact to management of many chemical
companies
Knowledge of chemical companies that are currently buying
Access to both European as well as US buyers in the chemical
industry
Good contacts/understanding of chemical buyers
Process overview
Customer profile
Overview CFIE’s type of customers:
Middle and large SME’s
20 – 400 employees
Revenues of 2M to 100M Euro
Interest and potential for international buyers
CFIE is organizing cross border SME M&A deals
Characteristics Distributors:
All need to prove their added value
Specialty Chemicals distributorMarketing Driven
Scope of services:-international marketing, sales and distribution-Exclusive supplier relationships Limited fixed assets
Commodity chemicals distributorLogistic driven
Scope of services:-Focus on local and/or national market-Relationship with competing suppliers-Warehouse function
More asset intensive
Trends in Chemical Distribution
Consolidation in the chemical industry….
environmental issues and IT requirements
….accelerates consolidation at chemical distributors
Industry wants to do more business with fewer distributors
Downturn leads to more outsourcing of the chemical industry
Large distributors compete for growth and market share
international distributors with access to capital are in the best position
Some Chemical References2006Sell mandates for three distribution companies, advisory projects, valuation project
2007Sell mandate for two distribution companies, several buy-mandates for SME companies, Equity financing
2008Several concluded deals of three chemical distribution companies and search projects
2009Involvement with troubled major chemical producers in Germany for private equity playersJoint cooperation with Solvingh on the sale of an environmental consultancy companyFocus on the portfolio of private equity players in the Benelux and abroad and acting as match maker. However, several projects were postponed or cancelled
2010Involvement with cross-boarder deals: the acquisition of a UK distributor for a Dutch International distributor, potential Turkish candidates for a major distributor
Current Projects
On going buy side assignments for 2 companies in the chemical
distribution markets
Sell Side Mandate for a chemical plant in Hungary
Pharma- product manufacturer Italy, Milan
Large number of search requirements strategic buyers
CFIE Chemical team knows which buyers are currently interested