Chemtrade Logistics closes Polytec acquisition

Executive Summary

• Chemtrade Logistics Income Fund has completed the acquisition of Polytec Inc., a southeastern U.S.-based provider of turnkey water treatment solutions, for $150 million (U.S.).
• The transaction was financed through Chemtrade's existing credit facility, with the company confirming that its leverage remains within target ranges and liquidity is ample post-closing.
• The acquisition expands Chemtrade’s water treatment chemicals platform with new service capabilities, products, and end markets, specifically targeting municipal and food-processing sectors to support its "Vision 2030" growth targets.

Key Details

• Transaction Value: $150 million (U.S.).
• Target Company: Polytec Inc., a provider of turnkey water treatment solutions based in the southeastern United States.
• Financing Structure: The acquisition was funded by drawing on Chemtrade’s credit facility.
• Strategic Rationale:
  • Adds a unique solutions platform leveraged across Chemtrade’s North American footprint.
  • Enables cross-selling and growth opportunities into municipal and food-processing markets.
  • Expands the water treatment chemicals platform with service capabilities, products, and end markets.
  • Supports execution toward advancing Chemtrade's "Vision 2030" growth targets.
• Management Transition: Polytec’s founder, Jack Harmon, has committed to staying actively involved in the business for several months following completion to ensure a smooth transition for employees and customers.
• Financial Impact: Chemtrade’s robust cash flows, enhanced by Polytec’s, ensure capacity for high-return organic growth projects and capital returns to unitholders. Leverage remains within the target range.

Notable Quotes

• Scott Rook, President and CEO: "We are pleased to welcome Polytec's employees and customers to Chemtrade. This acquisition represents a significant growth opportunity by adding a unique treatment solutions platform to our water chemicals business... Polytec diversifies Chemtrade's customer base while contributing to our Vision 2030 framework."
• Rohit Bhardwaj, CFO: "The acquisition of Polytec is possible, in significant part, because of the steps we have taken to strengthen and mature our balance sheet... Following the closing of the acquisition, Chemtrade's leverage remains within our target range and we have ample liquidity."