Chemtrade Logistics Income Fund Announces Closing of the Acquisition of Polytec, Inc.

Executive Summary

• Chemtrade Logistics Income Fund completed its previously announced acquisition of Polytec, Inc. for US $150 million, financing the deal through its credit facility.
• The transaction expands Chemtrade’s water‑treatment chemicals platform with service capabilities and opens cross‑selling opportunities in municipal and food‑processing markets, supporting its Vision 2030 growth targets.
• Post‑closing, Chemtrade’s leverage remains within target range and it retains ample liquidity to fund organic growth projects and return capital to unitholders.

Key Details

• Acquisition price: US $150 million paid via drawdown on Chemtrade’s existing credit facility.
• Target company: Polytec, Inc., a provider of turnkey water‑treatment solutions based in the southeastern United States.
• Strategic rationale: Adds a unique treatment‑solutions platform to Chemtrade’s water chemicals business, diversifies its customer base, and creates cross‑selling opportunities across North America, particularly in municipal and food‑processing sectors.
• Integration plan: Polytec’s founder, Jack Harmon, will remain actively involved for several months post‑closing to ensure a smooth transition for employees and customers.
• Financial impact: CFO Rohit Bhardwaj stated that the acquisition leverages Chemtrade’s strong cash flows and that leverage remains within target range with ample liquidity retained.
• Vision 2030 alignment: The deal supports Chemtrade’s long‑term growth framework by expanding service offerings and enhancing cash‑flow generation.

Notable Quotes

“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,” – Scott Rook, President & CEO

“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.” – Rohit Bhardwaj, CFO