Global chemical industry resumes growth in 2024 after two years of decline
The global chemical industry has shown clear signs of recovery during the first half of 2024, after facing two consecutive years of contraction. This positive change is reflected in a slight but significant increase in merger and acquisition transactions, marking a revival of dynamism in this key sector for the global economy.
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A paper prepared by experts in the area of mergers and acquisitions at PKF Attest.
In this report you will see industry trends, developments, facts and figures both nationally and internationally.
Increase in chemical sector EBITDA multiples
One of the metrics highlighting this recovery is the increase in EBITDA trading multiples, which reached 18.4x during the second quarter of 2024. This figure slightly exceeds the values observed in the same period of 2023, evidencing greater investor confidence in the chemicals sector and a more favorable valuation of companies in global markets.
Major operation in the Spanish chemical sector
The fourth quarter of 2024 brought with it an emblematic operation in the Iberian chemical sector: the ADI Group, based in Spain and recognized for its leadership in the production and distribution of chemical products, acquired WET (World Elastomers Trade). WET is a company specialized in the marketing of specialty chemicals, which is a strategic move to strengthen ADI's position in the elastomers and specialties segment. This agreement not only reflects the company's interest in expanding markets, but also its commitment to innovation and diversification in its product offering.
Change in EV/EBITDA multiples by sub-sector
EV/EBITDA multiples for fiscal 2024 have significant variations depending on the chemical sub-sector. Performance by key categories is detailed below:
> Agrochemicals: x11.7
> Flavors and fragrances: x16,5
> Inks and coatings: x9.3
> Carbon and composite materials: x5.5
> Chemical specialties: x6.6
> Polymers: x9.8
These figures reflect both global trends and segment-specific dynamics, with notable performance in flavors and fragrances, driven by growing demand in the food and cosmetics industries.
Outlook for the future
Factors such as innovation in sustainable materials, the transition to greener processes and economic recovery in key markets could continue to strengthen the sector in 2025.
The transaction between ADI Group and WET stands out as an example of the transformative potential of strategic mergers and acquisitions in the chemical industry environment.
