Chemical reaction
GRI’s group of companies are engaged in the development, manufacture and distribution of chemical ingredients for Personal Care, Household Care, Pharmaceutical and many Industrial applications. Tensachem is based on a 10 hectare freehold site in Liege, Belgium and is a leading manufacturer of a wide range of anionic surfactants and speciality chemicals, which are sold globally. It generates annual revenues of c.€85 million, is internationally respected and operates to high levels of accreditation.
There was a real international dimension to this deal. The acquirer was Kuala Lumpur Kepong Berhad (KLK), a multi-billion dollar global producer of oleochemicals, headquartered in Malaysia. The multi-jurisdictional nature of the deal is reflected in the fact that the list of advisors on the various elements of this complex deal included firms from the UK, Belgium, Germany, Switzerland and Malaysia.
Graham Royle, Chairman & CEO of GRI Group, commented: “TensaChem is renowned for its technology, quality and service and has been a hugely successful part of GRI Group since 2002. KLK has exceptional worldwide connections in the markets in which TensaChem operates and, as a vertically integrated producer of the key raw materials used by TensaChem, will make a superb strategic parent to provide TensaChem’s next chapter of growth. As for GRI Group, we have some exciting acquisition prospects in the pipeline, which can now receive our full attention.”
The BHP Corporate Finance team comprised David Forrest, Matt Scott and Mark Cooper. David Forrest, partner, commented: “This deal is a classic example of a strategic sale to a strategic buyer. Graham and his team acquired TensaChem in 2002 when it was loss-making and lacking direction. During their period of ownership they have transformed it (a real chemical reaction!) into a highly successful, world class producer. In KLK, the business has the perfect new parent.
We have enjoyed playing our part in this deal, are looking at a number of acquisition opportunities and very much look forward to continuing to work with Graham and his team in executing his vision for GRI Group.”
Our deal activity has been at an all-time high and details of further completed transactions will follow shortly.