On July 21, protective materials manufacturer Chase Corporation announced that it has entered into a definitive agreement to be acquired by an affiliate of investment funds managed by global investment firm KKR for $1.3 billion.
The all-cash deal includes the assumption of debt, according to a Chase Corporation news release. KKR also will acquire all outstanding shares of Chase common stock for $127.50 per share in cash. The transaction value implies a valuation of approximately 13 times trailing-12-months EBITDA.
“At Chase, we have always been deeply committed to continuously improving our operating performance while providing an outstanding customer experience,” said Adam P. Chase, President and Chief Executive Officer of Chase Corporation. “In KKR, Chase has found the right strategic partner with strong cultural alignment combined with the experience and resources to help support our mission and drive future growth.”
Once the deal closes, KKR will support Chase in creating an equity ownership program to provide all employees the opportunity to participate in the benefits of ownership of the company, according to the news release.
“This strategy is based on the belief that employee engagement is a key driver in building stronger companies,” Chase Corporation stated in the news release.
Chase Corporation said its Board of Directors has unanimously approved the transaction and recommends that shareholders vote in favor of the transaction. The deal is expected to close in the fourth quarter of 2023, subject to the receipt of approval from the company’s shareholders and certain required regulatory approvals, “as well as the satisfaction of other customary closing conditions,” the company said.
The all-cash transaction is not subject to financing conditions.
Once the transaction is complete, Chase will be a privately held company wholly owned by an affiliate of KKR’s investment funds and will no longer have its common stock listed on any public market.
“Over its nearly 80-year history, Chase has established itself as a leader in highly-engineered protective materials and built a portfolio of trusted brands, while delivering outstanding customer service,” said Josh Weisenbeck, a KKR Partner who leads KKR’s Industrials investment team. “We look forward to supporting Chase on its next phase of growth through developing exciting new products, executing upon strategic acquisitions, and serving customers in growing end-markets, including critical applications in electronics, fiber optics and electric grid infrastructure.”