Grace Matthews Inc managing director Ben Schaff (Ben Scharff) said M & A activity in the rubber and plastics chemicals markets remained strong in 2018 and that momentum could continue into the new year. Ace Matthews Inc.
He said market activity in 2018 was consistent in terms of the number of transactions compared to 2017.
"it's still very powerful for a number of reasons," Scharff said.
China's economy remains strong, he said, with a lot of capital in the market chasing deals. In addition, although the Fed (Fed) increased debt, debt is still relatively cheap.
"the rubber and plastics market is growing very strongly at the moment," Scharff said. "I would also say, then, that one important thing is the current regulatory environment. This is certainly good for the larger company. "
As the economy continues at this level, he said, "we sound like we've broken records, and sometimes we sit down with private owners and say the market can't buy anything." More importantly, the value is high, and many transactions are taking place. So far, this may have been going on for four to five years. "
Scharff said the plastic and rubber markets could be the second most traded market in 2018, excluding construction products. Although rubber and plastics cost more than in the past year, compared with specialty chemicals, their value has been relatively strong.
"We've seen a couple of dizzying valuations that aren't very different from the rest of the chemical industry right now," Scharff said.
He noted that Leon del Basel was one of the most important events in 2018. This material company has completed the test against A. A. Schulman Inc. $2.25 billion in acquisitions. In August, NDS, Composites and Powder, a supplier of plastic products. The acquisition more than doubled LyondellBasell's existing compound business, according to company officials.
He said, "I think A. Schulman's acquisition is one of the most significant deals I've seen this year. " "by everyone's measure, they paid a considerable price for the deal, a healthy multiple. Finally, I think there are good reasons for doing so. "
Leon del Basel (LyondellBasell) has also been seeking to acquire Braskem, a Latin American based petrochemical company, until the end of 2018, with talks continuing into the new year.