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September 22 2022, David R Brown

DKSH Performance Materials strengthens its North American presence with the acquisition of Terra Firma

DKSH has signed an agreement to acquire Terra Firma, a leading distributor of specialty chemicals in North America. The acquisition expands DKSH Business Unit Performance Materials in both the USA and Canada and the transaction is an important step in DKSH's strategy in building a truly global distribution platform for specialty chemicals and ingredients.

The Terra Firma acquisition is a milestone in the transformation of DKSH Performance Materials to becoming a global player

Stefan Butz
CEO of DKSH Holding Ltd

Terra Firma has national coverage in the USA and Canada and is representing premier suppliers in its core segments of CASE, plastics and construction, agrochemicals, health and nutrition, as well as personal care. The addition of a strong player in the North American Industrial specialty chemicals distribution sector is a major contribution to DKSH's Performance Materials business and is complementary to DKSH's existing specialty industrial business globally. DKSH's expertise in the distribution of life sciences ingredients offers a strong base to expand further into food, pharma, and personal care in North America.

Terra Firma currently operates with around 100 highly skilled professionals across the region and has offices in Los Angeles, Dallas, Baltimore, and Toronto. Terra Firma expects net sales of around USD 240 million in 2022. The transaction, which is expected to close towards the end of year, will be valued at USD 360 million enterprise value. DKSH will acquire at least 80% of Terra Firma with the remainder held by the company's existing management team. The transaction is EPS-accretive and will be financed via debt and cash.

Stefan Butz, DKSH's CEO, commented: “Expanding our presence in the North American market has been a strategic focus for our Performance Material business. Terra Firma's teams operate coast to coast and will accelerate our expansion into the North American specialty chemical distribution market, while we will provide their clients access to our global network. The Terra Firma acquisition is a milestone in the transformation of DKSH Performance Materials to becoming a global player.”

Tim Fetters, Terra Firma's CEO, added: “Terra Firma has earned an excellent market reputation by delivering value and significant growth to its customers and suppliers. By joining DKSH, we will be able to leverage our growth platform further and increase our presence in life sciences.”

About DKSH
For more than 150 years, DKSH has been delivering growth for companies in Asia and beyond across their 4 Business Units: Healthcare, Consumer Goods, Performance Materials, and Technology. The company offers sourcing, market insights, marketing and sales, eCommerce, distribution, and logistics as well as after-sales services. Listed on the SIX Swiss Exchange, DKSH operates in 36 markets with 33,100 specialists, generating net sales of CHF 11.1 billion in 2021. The DKSH Business Unit Performance Materials distributes specialty chemicals and ingredients for life sciences and various industrial applications. With 52 innovation centers and regulatory support worldwide, the BU help customers create cutting-edge formulations that comply with local regulations. With around 1,370 specialists, the Business Unit generated net sales of CHF 1.3 billion in 2021.

Source(s): DKSH Press Release

Further Information

Visit: https://www.dksh.com