Chase Corporation (NYSE American: CCF) – a leading global manufacturer of protective materials for high-reliability applications across diverse market sectors – recently announced that it has entered into a definitive agreement to be acquired by an affiliate of investment funds managed by KKR, a leading global investment firm. This all-cash transaction is valued at approximately $1.3 billion, including the assumption of debt.
Under the terms of the agreement, KKR will acquire all outstanding shares of Chase common stock for $127.50 per share in cash, delivering substantial value to shareholders. The transaction value implies a valuation of approximately 13 times the trailing twelve months’ EBITDA.
KKR is making its investment in Chase through its North America Fund XIII. The investment builds on KKR’s deep experience investing in industrial businesses with technical and materials science capabilities, including Minnesota Rubber and Plastics, Charter Next Generation, and Hyperion Materials & Technologies.
Following the close of the transaction, KKR will support Chase in creating an equity ownership program to allow all employees to participate in the company’s ownership benefits. This strategy is based on the belief that employee engagement is a key driver in building stronger companies. Since 2011, KKR portfolio companies have awarded billions of dollars of total equity value to over 60,000 non-management employees across more than 30 companies.
Transaction Approvals and Timing
The Board of Directors of Chase Corporation has unanimously approved the transaction and recommends that shareholders vote in favor. The transaction is expected to close in the fourth quarter of 2023, subject to the receipt of approval from the company’s shareholders, certain required regulatory approvals, and the satisfaction of other customary closing conditions. The all-cash transaction is not subject to financing conditions.
Peter Chase, Adam Chase, Mary Chase, and the Edward L. Chase Trust, collectively holding approximately 26% of the outstanding shares of Chase Corporation common stock, have entered into a support agreement under which they have agreed, among other things, to vote their shares in favor of the transaction.
Once the transaction is complete, Chase will be a privately held company wholly owned by an affiliate of KKR’s investment funds and will no longer have its common stock listed on any public market.
KEY QUOTES:
“At Chase, we have always been deeply committed to continuously improving our operating performance while providing an outstanding customer experience. In KKR, Chase has found the right strategic partner with strong cultural alignment combined with the experience and resources to help support our mission and drive future growth.”
– Adam P. Chase, President and Chief Executive Officer of Chase Corporation
“Over its nearly 80-year history, Chase has established itself as a leader in highly-engineered protective materials and built a portfolio of trusted brands, while delivering outstanding customer service. We look forward to supporting Chase on its next phase of growth through developing exciting new products, executing upon strategic acquisitions, and serving customers in growing end-markets, including critical applications in electronics, fiber optics and electric grid infrastructure.”
– Josh Weisenbeck, a KKR Partner who leads KKR’s Industrials investment team
