CCD Partners

Is Honeywell Joining the Chemicals Breakup Trend? 📈    On October 10th, Honeywell announced plans to undergo a significant transformation, realigning its operations around three megatrends: automation, future aviation, and energy transition. By adopting a simplified structure, Honeywell aims to accelerate growth, leverage synergies, and address critical global challenges.    A month later, Elliott Investment Management L.P.’s shareholding in Honeywell reaches over $5 billion. The investment firm urges the company to consider more significant restructuring measures. Elliott predicts this move could boost Honeywell's market value by up to 75% within two years.    Will Honeywell be the latest in a long line of corporate giants to pursue a corporate breakup strategy?   🔹 Rationale: Honeywell’s strategy follows successful corporate restructurings, such as those by General Electric and United Technologies, which led to notable stock gains. By realigning their portfolio, Honeywell aims to enhance efficiency, strengthen operational focus, and deliver long-term value for shareholders.    🔹 Summary: Honeywell’s new structure focuses on four segments: Aerospace, Industrial Automation, Building Automation, and Energy & Sustainability Solutions. Supported by the accelerator system and connected enterprise platform, this streamlined approach aims to address challenges in automation, aviation, and energy.    #PortfolioRestructuring #Restructuring #Honeywell #Megatrends 

We tracked 11 M&A deals in the fine and specialty chemicals markets this week 📈  Chemical highlights feature our top-five recent global M&A and senior people moves.     Sign up here to receive the full list  ➡️ https://lnkd.in/eqkaV4zS      1. Amcor has agreed to acquire Berry Global, Inc. in an all-stock transaction valued at $8.4 billion, combining their operations to create a global leader in consumer packaging solutions. This acquisition is expected to generate $24 billion in revenue and $4.3 billion in adjusted EBITDA while driving synergies through innovation, sustainability initiatives, and increased investment in R&D.    2. The ANSA McAL Group has acquired chlor-alkali producer BLEACHTECH LLC for $327 million, marking the Caribbean conglomerate’s largest acquisition in its history. This move expands ANSA McAL’s market reach into North America, complementing its leadership in the Caribbean chemical industry and enhancing its focus on sustainable water treatment solutions.     3. Azelis has announced the acquisition of Haarla Oy, a Finland-based distributor of food ingredients and industrial chemicals, marking a strategic move to enhance its portfolio in the Nordics. Haarla Oy's strong presence in food ingredients, its 300+ customer base, and longstanding principal relationships align well with Azelis’ growth strategy and product portfolio in life sciences and industrial chemicals.    4. Symrise AG has announced a public offer to acquire all outstanding shares of Probi AB, a biotics solutions company listed on Nasdaq Stockholm. As Probi's largest shareholder since 2012, Symrise aims to integrate Probi into its health-focused strategy, leveraging its expertise to drive global growth in probiotics for functional foods and supplements.   5. Sun A. Kaken has completed the acquisition of Resonac Corporation’s surface protection film business. This transaction aligns with Resonac’s long-term vision to optimise its business portfolio, ensuring sustainable growth while leveraging Sun A. Kaken’s expertise in plastic film processing.    #MergersandAcquisitions #CorporateDevelopments #ChemicalIndustry 

Our featured CRO ‘to watch’ established North America’s first GMP-certified cryo-TEM laboratory.     During our Pre-Clinical CRO Watchlist, we interviewed NanoImaging Services (NIS). With expertise in structural biology, nanoparticle characterisation, and protein consultancy, they provide clients with unparalleled insights into complex biological systems.    Operating from three state-of-the-art facilities, NIS combines decades of experience with innovative solutions. 🔬   NIS’s mission is to enable breakthroughs in drug discovery by delivering the most precise understanding of proteins and nanoparticles, empowering clients to span the entire pipeline from discovery to development. 🔎   #CryoEM #DrugDiscovery #Biotech #CRO  

We’re pleased to share that our interview with Matthew Wise, Head of Data, is featured in the CPHI Milan 2024 Wrap-Up Report. Our interview feature can be found in the section on the Start-Up market, where we discuss how companies can disrupt an established industry like pharmaceuticals. It was a great opportunity to be partners of the CPHI Milan Start-Up Market this year, working to expand the reach of the event to financial professionals in pharma. Read the report here including our interview with CPHI Online:  https://lnkd.in/gCXaBiPz 🔗

Why is an information memorandum (IM) so important for chemical SMEs?    The Information Memorandum (IM) is a critical document in the sale of a business, bringing together its history, current performance, and future growth potential into a single, compelling narrative. This is especially vital in the chemicals sector, where technical details and niche applications can be challenging for outsiders to fully grasp. A well-prepared IM not only simplifies these complexities but also highlights the unique value and opportunities within the business. Two key benefits of a professionally made IM: Support Negotiations: A well-prepared IM can shape negotiations, highlight synergies, and present a clear value proposition to potential buyers. In contrast, DIY IMs may unintentionally weaken the seller’s position by failing to convey the business’s full potential.    Maximise Value: Effective IMs require a balance of detail and clarity, offering a cohesive narrative that aligns with the buyer’s perspective while ensuring the seller’s preparedness is evident. When done effectively, a well-crafted IM can significantly influence outcomes— in our experience, often achieving valuations up to 40% above market benchmarks. Read the full article here: https://lnkd.in/evGT53nE #ChemicalIndustry #MergersAndAcquisitions 

We tracked 10 M&A deals in the fine and specialty chemicals markets this week 📈     Chemical highlights feature our top-five recent global M&A and senior people moves.     Sign up here to receive the full list  ➡️ https://lnkd.in/eqkaV4zS      1. Ilham Kadri, CEO of Syensqo, has been re-elected as President of the European Chemical Industry Council (Cefic) for a two-year term. Kadri’s leadership continues to drive sustainable and competitive initiatives for the European chemical industry, with a focus on fostering collaboration between industry leaders and policymakers. 2. IMCD Group has appointed Nicky Huang as Managing Director for IMCD China and IMCD Sanrise. With over 16 years of experience in senior management, including her role as Regional Sales Manager at A. Schulman, Huang will oversee the integration and development of IMCD’s businesses in China, building on the transformation she led at IMCD China since 2023. 3. NIPPON SHOKUBAI CO., LTD. has acquired JSR Corporation's emulsion business under the name E-TECH, marking a strategic expansion into construction chemicals. The acquisition leverages E-TECH’s expertise in adhesives and waterproofing polymers, aligning with Nippon Shokubai's industrial and household business growth. 4. SMC Global, a Special Materials Company has acquired International Chemicals LLC (ICC), integrating its oilfield business with ICC’s operations to enhance capabilities in oil and gas solutions. The merger includes a trucking fleet and ICC’s facilities in Texas, enabling efficient manufacturing and customer service.   5. HARBOUR BIOMED has appointed Raymond Zheng as Chief Business Officer, where he will lead global business development and alliance management. Zheng, formerly the founder and CSO of Urica Therapeutics, brings his experience from leadership roles at Fortress Biotech and Agenus.   #MergersandAcquisitions #CorporateDevelopments #ChemicalIndustry 

Pharma Deal Spotlight: Lundbeck Acquires Longboard Pharmaceuticals in Largest Acquisition to Date 💊    Last month, Danish pharmaceutical manufacturer, Lundbeck, announced its acquisition of US-based Longboard Pharmaceuticals, marking a pivotal step in neuroscience innovation. The deal, valued at $2.6 billion equity value (approximately $2.5 billion net of cash), will be funded through existing cash and bank financing.     Key Financial Details 💰 Price Per Share: $60 in cash, a 77% premium to the 30-day volume-weighted price average (as of September 30, 2024).  Integration Costs: Approximately $80 million (DKK 550 million) Leverage: with a focus on de-leveraging, Lundbeck is targeting approx. <2.5x NIBD/EBITDA within 18–24 months.     Strategic Rationale 📈 The acquisition brings bexicaserin, Longboard’s lead asset, targeting Developmental and Epileptic Encephalopathies (DEEs). With its 5-HT2C super-agonist mechanism and promising clinical data, bexicaserin strengthens Lundbeck’s position in addressing unmet needs in neuro-rare diseases.     #Neuroscience #MergersandAcquisitions #Pharmaceuticals #DrugDevelopment

📈 Innovative Pharma business to watch:   PHIOGEN is revolutionising phage therapy with directed evolution 💊 PHIOGEN's innovative platform scales the discovery and screening of natural bacteriophages, identifying variants with enhanced activity to overcome resistance through biological adaptation. Their discovery platform closely mimics patient conditions via ex-vivo and in situ disease modelling, enables directed evolution ‘training’ of phage to overcome bacterial resistance, resulting in predictive or ‘smart’ medicine.    During the creation of our CPHI Watchlist, we spoke with CEO Amanda (Curtis) Burkardt about their transformative technology and its potential to reshape the industry. ↓    #Antibiotics #Biotechnology #PhageTherapy #ChemicalIndustry 

📈 The shift towards sustainability-focused goals is prompting portfolio realignments across the chemical and life sciences sectors. 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲-𝐃𝐫𝐢𝐯𝐞𝐧 𝐃𝐢𝐯𝐞𝐬𝐭𝐢𝐭𝐮𝐫𝐞𝐬: There has been a move toward offloading assets that do not align with new ESG (Environmental, Social, and Governance) goals. This is especially true for energy-intensive or environmentally harmful processes, with companies looking to 'green' their portfolios by acquiring businesses aligned with sustainability and low carbon output. This approach to portfolio realignment helps companies achieve their ESG commitments while creating pathways for sustainable growth.

Contract Research Organisation (CRO) to Watch 👀 For our Pre-Clinical CRO Disruptor Watchlist, we interviewed 2bind, a pioneering German CRO redefining early-stage drug discovery. Specialising in advanced, biophysics-based assays, 2bind leverages a robust network of tech partners and pushes boundaries with next-gen techniques like GCI, BLI, spectral shift, and heliXCyto. ⚙️ Their tailored solutions keep them at the cutting edge of the industry. #Biophysics #DrugDiscovery #CRO #Innovation