CCF - KKR to acquire specialty maker Chase Corp. for ~$1.3B

2023-07-21 08:25:32 ET

Specialty chemicals maker Chase Corp. ( NYSE: CCF ) agreed on Friday to be acquired by KKR ( NYSE: KKR ) in an all-cash transaction valued at about $1.3B, including the assumption of debt.

Under the deal, an affiliate of investment funds managed by KKR ( KKR ) will pay $127.50 per share for each Chase ( CCF ) share, which was less than CCF's closing price of $127.94 on Thursday. The company's stock had risen 3.6% on Thursday after a media report that KKR was close to making the deal.

After the agreement was announced, CCF shares dropped 1.1% in premarket trading to $126.50. KKR ( KKR ) stock gained 2.6% .

The proposed transaction value implies a valuation of ~13x trailing twelve-month EBITDA, the company said.

Members of the Chase family who collectively hold ~26% of the company's outstanding common stock agreed to vote their shares in favor of the transaction.

The acquisition is expected to close in Q4 2023, subject to receiving shareholder approval and regulatory approvals. The transaction isn't subject to financing conditions.

KKR ( KKR ) is making the investment through its North America Fund XIII, which invests in industrial businesses with technical and materials science capabilities.

In June, the Wall Street Journal reported that Chase ( CCF ) was seeking to sell the firm.

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