Weekly M&A Digest
A curated selection of transactions and deals from the past week.
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Deal Summary
Aramco to acquire Global Product Business from Valvoline
Aramco Overseas Company B.V., a manufacturer of chemicals products, announced the acquisition of the Global Products Business, a leading worldwide independent producer and distributor of premium branded automotive, commercial, and industrial lubricants, and automotive chemicals, from Valvoline Inc. (NYSE: VVV), for $2.65 billion. Valvoline will own the Valvoline brand for all retail services purposes globally, excluding China and certain countries in the Middle East and North Africa, while Aramco will own the Valvoline brand for all product uses globally.
“The sale of Global Products represents the successful outcome of our strategy to unlock the full, long-term value of our strong but differentiated Retail Services and Global Products businesses…We have built two leading businesses that are well-positioned for continued success as they pursue their individual strategic priorities. We are pleased that our Global Products team will have a strategic new home with Aramco to further grow the business while developing the brand into a global lubricants leader.” - Sam Mitchell, CEO of Valvoline.
WestRock to Acquire Remaining Interest in Grupo Gondi
WestRock Company (NYSE: WRK), a provider of paper and packaging solutions, announced the acquisition of the remaining interest in Grupo Gondi, for $970 million, plus the assumption of debt, representing an estimated implied enterprise value of $1.763 billion. Grupo Gondi operates four paper mills, nine corrugated packaging plants, and six high graphic plants throughout Mexico, producing sustainable packaging for a wide range of end markets in the region. The tuck-in acquisition will provide WestRock with further geographic and end market diversification as well as position the Company to continue to grow in the attractive Latin American market.
"Acquiring the remaining interest in Grupo Gondi is the next strategic step in our broader North American paper and packaging expansion strategy…As onshoring continues to grow in the region, WestRock will be well positioned to meet this growing demand with fully integrated operations in Mexico. We will also have expanded capabilities to serve customers across many geographies, driving additional productivity and cost savings.” - David B. Sewell, CEO of WestRock.
Colgate-Palmolive to acquire three Manufacturing Plants from Red Collar Pet Foods
Colgate-Palmolive Company (NYSE: CL), a manufacturer of Oral Care, Personal Care, Home Care, and Pet Nutrition products, announced the acquisition of three dry pet food manufacturing plants in the U.S. from Red Collar Pet Foods for $700 million to support the global growth of its Hill’s Pet Nutrition business.
“Our Hill’s business is growing well, and we continue to invest to expand production capacity, improve our capabilities with initiatives like our new Small Paws Innovation Center, and better engage pet parents, veterinarians, and Hill’s retail partners…This investment will help further strengthen the Hill’s business today and for the long term.” - Noel Wallace, Chairman, President, and CEO of Colgate-Palmolive Company.
Fortune Brands to acquire Aqualisa
Fortune Brands Home & Security, Inc. (NYSE: FBHS), an industry-leading home and security products company, announced the acquisition of Aqualisa Holdings (International) Ltd., a leading U.K. manufacturer of shower products known for premium, innovative, smart digital shower systems and exceptional customer care, for $160 million.
“Fortune Brands has long been a brand and innovation leader. As we continue to evolve, we are proactively positioning our Company for a future of increased brand and innovation strength and accelerated growth…This exciting acquisition helps advance our key strategic focus on the super-charged categories in water. As part of our Fortune Brands Water Innovations business, Aqualisa will enable us to continue to leverage powerful growth accelerants in water management, connected products and global sustainability. These categories present tremendous opportunities for our Company, and Aqualisa’s portfolio of digital, premium showering products will enhance our ability to capture that upside.” - Nicholas Fink, CEO of Fortune Brands.
Softys to acquire Mexican business from Ontex Group
Softys S.A., a personal hygiene company with operations across Latin America and a subsidiary of CMPC S.A., announced the acquisition of the Mexican business activities from Ontex Group NV (Euronext: Ontex), a supplier of personal care products, for €285 million. The transaction includes Ontex’s business in Mexico and related exports to regional markets as well as its manufacturing facility in Puebla, Mexico. The plant in Tijuana, Mexico remains within the Ontex portfolio as an integral part of Ontex’s North American supply chain footprint.
“This divestment represents a major milestone in our strategy to reshape our portfolio. The proceeds from the sale will contribute to reducing our net debt and strengthening our balance sheet. I am convinced that Softys, with its 40 years of experience in the personal hygiene market in Latin America, is well placed to take the business forward, benefiting from the talent and expertise of our team in Mexico.” - Esther Berrozpe Galindo, CEO of Ontex.
SOURCES
Valvoline Press Release, Aramco Press Release:
https://investors.valvoline.com/news/news-details/2022/Valvoline-Announces-Agreement-for-Sale-of-Global-Products-Business-for-2.65-Billion-in-Cash/default.aspx
https://www.aramco.com/en/news-media/news/2022/aramco-agrees-to-acquire-valvoline-global-products-business
Westrock Press Release:
https://ir.westrock.com/press-releases/press-release-details/2022/WestRock-to-Acquire-Remaining-Interest-in-Grupo-Gondi/default.aspx
Colgate-Palmolive Press Release Press Release:
https://investor.colgatepalmolive.com/news-releases/news-release-details/colgate-palmolive-company-invests-growth-its-hills-pet-nutrition
Fortune Brands Press Release:
https://ir.fbhs.com/news-releases/news-release-details/fortune-brands-acquires-aqualisa-expands-portfolio-and
Ontex Press Release:
https://ontex.com/news/ontex-reaches-an-important-milestone-in-its-strategy-with-an-agreement-to-sell-its-mexican-business-to-softys/