Chase Corporation set to be acquired by KKR in $1.3bn deal

Global investment firm KKR has entered into a definitive agreement to acquire Chase Corporation, a leading global manufacturer of protective materials for high-reliability applications, in an all-cash transaction valued at approximately $1.3 billion, including the assumption of debt.

This agreement sees KKR acquiring all outstanding shares of Chase common stock for $127.5 per share in cash, a transaction that implies a valuation of approximately 13 times trailing-twelve-months EBITDA, and delivers substantial value to shareholders.

Chase Corporation, a global specialty chemicals company established in 1946, serves various market sectors worldwide. “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,” said Adam P. Chase, President and CEO of Chase Corporation.

Josh Weisenbeck, a KKR Partner who leads KKR’s Industrials investment team, lauded Chase’s reputation and market position, adding, “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.”

KKR plans to make the investment in Chase through its North America Fund XIII, building on its experience investing in industrial businesses with technical, materials science capabilities. Following the close of the transaction, KKR intends to support Chase in creating an equity ownership program for all employees to participate in the benefits of ownership of the company.

Chase Corporation’s Board of Directors has unanimously approved the transaction, recommending that shareholders vote in favor. The transaction is slated to close in the fourth quarter of 2023, pending approval from Chase Corporation’s shareholders, required regulatory approvals, and other customary closing conditions.