Grimbergen, Belgium, May 2, 2019. The management of Chemogas, a leading international provider of packaged chemical specialty gases and related services, and Benelux private equity firm Gilde Equity Management today announced the agreement to sell Chemogas to Balchem Corporation, a US-based listed company engaged in the development, manufacturing and marketing of specialty ingredients. Chemogas is one of the premier global providers of packaged ethylene oxide to the medical sterilization industry. Closing of the transaction is still subject to the completion of customary closing conditions.
Chemogas is a leader in the packaging and distribution of a wide variety of specialty gases, most notably ethylene oxide for medical device sterilization, primarily in the European and Asian markets. Through its operational and logistical excellence, Chemogas supports its customers’ needs across more than 70 countries worldwide. Facilitated by majority shareholder Gilde Equity Management, Chemogas was carved- out of The Linde Group in 2016, which owned Chemogas for 26 years. Since the carve-out, growth has been realized on multiple fronts, including the strategic acquisition of Malaysia-based Stereo in 2018 as a stepping stone in the high growth Asia-Pacific region.
Dirk Battig, CEO of Chemogas-Group, is very pleased with this transaction: “Supported by majority shareholder Gilde, we have further internationalized our footprint with the acquisition of Stereo Group in Asia-Pacific. We are now ready to leverage our leading position in Europe and Asia-Pacific and team up with Balchem, to further strengthen our position as a true global reference supplier of packaged specialty gases. We are excited to take on this next step together with them.”
Frederic Van den Weghe, Partner at Gilde Equity Management, comments: “We supported Chemogas management in their management buy-out with a clear goal to facilitate Chemogas’ successful international growth path and its strategy of tapping into new product segments and targeting new geographies, fueled by a growing market share of ethylene oxide for the global sterilization market. The acquisition of Stereo in 2018 was a good example of our strategy, where we created a local hub in the high growth APAC region and further strengthened Chemogas’ foothold as an international reference supplier of packaged specialty gases. We see a strong complement between Chemogas and Balchem and foresee a bright future for Chemogas and its people under this new umbrella.”
Through this acquisition, Balchem significantly expands its geographic presence in the packaged ethylene oxide market, enabling the company to offer worldwide service and support to its medical device sterilization customers. The Chemogas sites in Europe and Asia will form a global network of facilities when combined with Balchem’s sites in the United States.
Ted Harris, Chairman, CEO, and President of Balchem said, “With the acquisition of Chemogas, Balchem is now the clear global leader in the critical supply of ethylene oxide to the medical device sterilization industry”. Mr. Harris added, “We are very excited to add Chemogas’ team of talented employees and their extensive packaging and supply chain capabilities to Balchem. The combination of our two companies will significantly enhance our ability to service and support our customers on a more global basis.”
Chemogas NV, originally founded in 1975 and headquartered in Grimbergen (Belgium), is a global leader in the filling, blending, worldwide marketing and distribution of chemical gases and liquids, as well as related services. The company is one of the premier global providers of packaged ethylene oxide to the medical sterilization industry, with exports to more than 70 countries. Chemogas also supplies natural refrigerant gases (like ammonia, propylene etc.) and other specialty gases for the use in a broad spectrum of industries. Over the years, the company successfully developed a predominant position as an officially registered Waste Treatment Centre and Waste Collector within its market segments, also providing recycling services for packaged gases. The Chemogas Group, being a top tier SEVESO company, holds the ISO 9001,ISO 14001, ISO 13485 and OHSAS 18001 certifications. For more information please visit www.chemogas.com.
About Balchem Corporation
Balchem Corporation (NASDAQ:BCPC) develops, manufactures and markets specialty ingredients that improve and enhance the health and well-being of life on the planet, providing state-of-the-art solutions and the finest quality products for a range of industries worldwide. The company reports four business segments: Human Nutrition & Health; Animal Nutrition & Health; Specialty Products; and Industrial Products. The Human Nutrition & Health segment delivers customized food and beverage ingredient systems, as well as key nutrients into a variety of applications across the food, supplement and pharmaceutical industries. The Animal Nutrition & Health segment manufactures and supplies products to numerous animal health markets. Through Specialty Products, Balchem provides specialty-packaged chemicals for use in healthcare and other industries, and also provides chelated minerals to the micronutrient agricultural market. The Industrial Products segment manufactures and supplies certain derivative products into industrial applications. For more information please visit www.balchem.com.
About Gilde Equity Management (GEM) Benelux
Gilde Equity Management (GEM) Benelux is an independent private equity firm with over EUR 1 billion in assets under management. It is one of the leading investors in medium-sized companies in the Benelux countries and has achieved successful international growth for many companies. Examples of investments of Gilde are Belgium based Actief Interim, one of the leading independent staffing agencies in Western-Europe; Fruity Line, a producer of premium freshly squeezed fruit and vegetable juices and smoothies; EV-Box, the leader in charging solutions for electric vehicles with the largest installed base globally, spanning 840 cities in 24 countries; conTeyor, a leading engineered packaging solution provider for the automotive industry and Dunlop Protective Footwear, the oldest manufacturer of boots in the Netherlands that has become the global market leader. In Belgium Gilde is also active through among others Kwantum and Leenbakker, operating 14 and 65 retail locations respectively with a complementary product offering of affordable home furnishings and interior accessories. For more information please visit www.gembenelux.com.
Contacts : Frederic Van den Weghe, Partner Gilde Equity Management
Phone: +32 3 808 49 81
Dirk Battig, CEO Chemogas
Phone: +32 22 578 851