Target Information

Carter Morse & Goodrich (CMG) proudly served as the exclusive financial advisor to Cranston Print Works (CPW) in the sale of its Bercen Chemicals division to Vertellus, a prominent global specialty chemical company. Founded in 1958, Bercen operates as a subsidiary of the Rhode Island-based CPW, which has been employee-owned since 1987. Bercen is recognized as a leading supplier in the United States of alkyl succinic anhydrides and additives, primarily utilized in the fuel, lubricant, and paper industries. The company is headquartered in Denham Springs, Louisiana, where it specializes in providing maleic anhydride derivatives that cater to paper sizing and various industrial applications.

Industry Overview

The specialty chemicals industry in the United States is a robust sector characterized by innovation and diverse applications across multiple industries, including agriculture, pharmaceuticals, and personal care. This sector has shown a steady growth trajectory, driven by increasing demand for high-performance and environmentally friendly products. With the advent of advanced technologies, U.S. manufacturers continue to improve the efficiency and sustainability of chemical production.

In Louisiana specifically, the chemical industry holds a significant position within the economy, contributing substantially to employment and state revenue. The state is home to numerous chemical manufacturing facilities, benefiting from a strategic location with easy access to raw materials and transportation networks. As businesses in this sector pivot towards sustainable practices, opportunities for growth and investment continue to emerge.

The demand for specialty chemicals is anticipated to rise in the coming years, largely due to their indispensable role in adding value to various end products. This trend supports the competitive landscape of companies like Vertellus, which focuses on meeting the evolving needs of customers across diverse categories.

As companies strive to expand their product portfolios, mergers and acquisitions within the specialty chemicals market are becoming more prevalent. This consolidation trend is expected to foster innovation and enhance product offerings, benefiting both suppliers and consumers.

Rationale Behind the Deal

This strategic acquisition allows Vertellus to broaden its product offerings in the North American market, which is expected to be highly complementary to its existing capabilities. The transition of Bercen under Vertellus not only secures employment and pensions for Bercen’s current and former employees but also sets the stage for growth at the Louisiana facility. This shift represents a significant step in elevating Vertellus’s position within the global fuel and lubricant additives market.

Information About the Investor

Vertellus is a leading provider of specialty chemicals with a broad range of applications in industries such as agriculture, nutrition, and personal care. The company produces essential ingredients found in everyday products, including personal care items, pharmaceuticals, and industrial applications. With approximately 800 employees and ten manufacturing plants globally, Vertellus maintains a robust presence in key markets across the US, Europe, China, and India. The company’s focus on innovation and sustainability positions it well for continued growth in the specialty chemicals industry.

View of Dealert

In evaluating the acquisition of Bercen by Vertellus, it is clear that this transaction could be a strategic win for both parties. Vertellus strengthens its foothold in the specialty chemicals market while ensuring continued operations at Bercen's facility, which is crucial for employee job security and the overall economic stability of the region.

The deal also enhances Vertellus’s product offerings, enabling it to serve the ever-evolving needs of its customers with a more diversified portfolio. Such synergy aligns well with industry trends towards consolidation and innovation, presenting an opportunity for sustained growth.

Furthermore, the long-standing relationship between CPW and CMG suggests a level of trust and experience in navigating complex transactions. This partnership demonstrates a commitment to maximizing shareholder value for CPW, affirming the deal’s rationale as we look towards the future.

Overall, the Bercen acquisition indicates a forward-thinking strategy for Vertellus, which not only secures its competitive edge but also potentially leads to expanded market share in the lucrative specialty chemicals sector.

View Original Article