Global chemicals deals insights: Q2 2019

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Executive summary

Chemicals industry deal activity declined from both a value and volume perspective during the second quarter of 2019 to the lowest levels of any of the last 12 quarters largely attributable to the ongoing macroeconomic uncertainties including tariffs and rising geopolitical tensions. The largest announced transaction during the quarter was a $3.7 billion acquisition in the Specialty Chemicals category. Investments in and valuations in the Specialty Chemicals category continue to be the most sought after with dwindling supply.

chemicals-deal-activity

Key trends/highlights

  • In Q2 2019, deal value was $11.1 billion, a decrease of 87% vis-à-vis Q1 2019. For YTD 2019, deal value increased by 67% when compared to YTD 2018.
  • In terms of volume, Q2 2019 witnessed 172 deals, a decline of 7% when compared to Q1 2019. For YTD 2019, deal volume also declined by 19% vis-à-vis YTD 2018.
  • The average deal size in Q2 2019 declined significantly to $124.9 million, 87% less than the prior quarter. But the average deal size for YTD 2019 increased by a whopping 2.2x compared to YTD 2018.

“When thinking about Chemicals M&A, given the current macro-economic environment and trade wars taking shape, it has never been more essential to assess and reassess supply chains, understanding how new or proposed regulations and geopolitical tensions have or could impact the business or future transactions.”

Craig Kocak, US Chemicals Deals Leader

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Kazi Islam

Chemicals Leader, PwC US

Craig Kocak

Chemicals Deals Leader, PwC US

Chris Cardinal

Chemical Deals Strategy Leader, PwC US

Seamus Jiang

Deals Managing Director
China Inbound Deals Leader, PwC US

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