Bain-backed Italmatch buys Water Science Technologies

Alessia Argentieri
30 September 2019

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Italian speciality chemicals business Italmatch Chemicals, a portfolio company of private equity firm Bain Capital, has acquired US-based Water Science Technologies, a provider of chemical compounds for the water treatment industry.

With this acquisition, Italmatch expects to further strengthen its presence in the North American water treatment and oil and gas markets, as well as broaden its product range, expand its client base and develop its R&D capabilities.

This is the third bolt-on inked by the company since it was acquired by Bain, following its purchase of Manchester-based industrial water treatment specialist BWA Water Additives in December 2018 and its acquisition of Norwegian business Eco Inhibitors in April 2019.

Bain Capital acquired Italmatch from Ardian in June 2018 in a deal valued at around €700m. The GP invested via its fourth Europe-focused fund, Bain Capital Europe IV, which held a final close in 2014 on €3.5bn.

The SBO ended a four-year holding period for Ardian, which bought a 67.7% stake in Italmatch from Mandarin Capital Partners and a minority holding from the Malacalza family in 2014, reaching a total ownership of 88%. The deal valued the company at around €220m at the time.

Italmatch generates annual revenues of €600m, employs a staff of 900 people and operates seven manufacturing plants based in Europe (Italy, Spain, Germany and the UK), five in Asia (China, Japan and India), and five in the US, as well as several distribution subsidiaries located in Brazil, Belgium, China, Japan, India, Poland, Singapore and the US.

Company
Headquartered in Birmingham, Alabama, Water Science Technologies produces chemical compounds, including acid corrosion inhibitors, borate crosslinked fluids and cleaner and degreaser additives, for the industrial water treatment and oil and gas industries.

The company also offers water analysis, spectrophotometry, ICP analysis, scale analysis, biological testing, product compatibility, viscosity and corrosion testing, and scale inhibitor and performance evaluation. It employs 40 staff across four production facilities located in North America and generates revenues of around $75m.

People
Italmatch Chemicals – Sergio Iorio (founder, CEO).
Water Science Technologies – James Sasser (CEO).