Overview
The Chemical Manufacturing industry, pivotal for sectors like pharmaceuticals, automotive, electronics, and agriculture, involves transforming raw materials into high-demand, specialized chemicals. Growth in this industry is driven by innovations in materials science, increasing demand for sustainable and eco-friendly products, and the sector’s critical role in global supply chains.
For M&A professionals, consolidation within the industry presents opportunities to streamline production, enhance economies of scale, and access new technology and specialized products that cater to shifting market demands. Companies in the sector frequently seek acquisitions to achieve vertical integration, securing raw material sources, optimizing manufacturing processes, and expanding product portfolios. Additionally, regulatory trends, particularly around environmental standards, push companies to acquire capabilities that improve compliance, lower carbon footprints, and appeal to increasingly eco-conscious markets. The industry’s essential role in numerous end markets makes it a dynamic area for strategic acquisitions, with deals often motivated by access to technology, specialized expertise, and geographic expansion.
Sub-Sectors
|
NAICS Code |
Industry Description |
|
325 |
Chemical Manufacturing |
|
32511 |
Petrochemical Manufacturing |
|
32518 |
Inorganic Chemical Manufacturing |
|
32519 |
Organic Chemical Manufacturing |
|
325194 |
Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufacturing |
|
3253 |
Pesticide, Fertilizer, and Other Agricultural Chemical Manufacturing |
|
32599 |
Chemical Product and Preparation Manufacturing |
|
325992 |
Photographic Film, Paper, Plate, and Chemical Manufacturing |
Historical PE Investments in Chemical Manufacturing
Private equity investments in the chemical manufacturing sector have remained stable over time, with a slight downward trend. From 2000 to 2022, the percentage of total private equity (PE) platform acquisitions in this sector has generally declined from approximately 5% of all PE platform acquisitions in 2000 to a steady state of approximately 4.0% in recent years.
Despite the overall decline in percentage terms, the absolute PE deal volume in the sector remained robust when accounting for the overall growth in private equity over time, indicating a sustained interest in large-scale acquisitions and consolidation efforts.
Market Summary (2001 - 2024)
- 7,300 - Platform investments
- 2,943 - Add-on investments
- 1,893 - Total unique private equity firms invested
Top 5 Private Equity Firms Invested in Chemical Manufacturing
Measured by the number of deals in Chemical Manufacturing.
- OrbiMed Advisors (New York, NY)
- Foresite Capital (Larkspur, CA)
- Vivo Capital (Palo Alto, CA)
- Aisling Capital (New York, NY)
- Polaris Partners (Boston, MA)
Geographical Distribution
Sample Private Equity Investments in our Database
June 2024
Incline Equity Partners announced its partnership with W.S. Connelly (Richmond, VA).
W.S. Connelly is a value-added distributor of consumable agronomics products for lawn and landscape, erosion control and golf applications. WSC supplies plant protection, seeds, fertilizers and erosion control solutions.
June 2024
Aterian Investment Partners acquired Contract Pharmaceuticals Limited (Ontario, Canada).
Contract Pharmaceuticals Limited is a Contract Development and Manufacturing Organization (CDMO) that provides development, manufacturing, packaging, and testing of non-sterile liquid and semi-solid pharmaceutical prescription and regulated OTC products.
September 2023
Brightstar Capital Partners completed the acquisition of Douglas Products (Liberty, MO).
Douglas Products is a Manufacturer and distributor of specialty chemical products for pest management, thermal fluids, and sanitary sewer applications. Its brands are ProFume and Vikane.
April 2023
TPG acquired Ohmium (Fremont, CA).
Ohmium International is a green hydrogen company that designs, Manufactures, and deploys advanced proton exchange membrane (PEM) electrolyzer systems.
February 2023
One Equity Partners recapitalized Imperative Chemical Partners (Midland, TX).
Imperative Chemical Partners is a specialty chemicals business that provides a wide range of custom chemical formulation, Manufacturing, and technical services.
How Private Equity Info sources data
As a research database and information services company serving the middle market M&A community for 20 years, Private Equity Info ingests enormous amounts of data surrounding transactions, firms, and executives. In addition, our team engages in many conversations daily across the spectrum of investors, investment bankers, and service providers to the M&A community.
This summary report was put together by analyzing the private equity investments collected by our dedicated research team which follows 127,000 key executives, 16,000 firms and 33,000 funds in the M&A industry, or 34 million total data points. Private equity investors, investment bankers and service providers in the M&A space use Private Equity Info to search, identify and download targeted lists of M&A professionals in order to connect with key executives across thousands of companies, firms and funds.