CORPORATE FINANCE
IN EUROPE
M&A CHEMICAL INDUSTRY
Istanbul April 1 Yapkim
Index CFIE
This presentation contains the following items:
 Background CFIE
 Buyer search
 Objectives CFIE
 Process Overview
 International approach
 Customer profiles
 Country focus
 Characteristics Distributors
 Industry Focus
 Trends chemical distribution
 Team CFIE
 References
Background CFIE
 Funded in 2001 after team members previously gained M&A and
CF experience at investment banks and multinationals
 View of GAP in European cross border M&A support for middlesized SME’s (20 – 400 employees)
 International experience and background team members
 Flexible and pragmatic structure with high quality (investment
banking) M&A services
CFIE team has long experience in the European M&A market
OBJECTIVES CFIE
 Help business owners sell their business in Europe (retirement or
other reasons)
 Create liquidity (cash) for business owners
 Bring companies from different countries together that create
synergy hence improving the quality of businesses
 Make the M&A market of European economies more efficient
 Fill the GAP left by large investment banks who don’t focus on
middle-sized SME’s
CFIE team helps European business owners
sell their business and create liquidity
International (European & US) approach
CFIE’s team uses it’s international background:
 Team members live and work in various countries
 Strategic partnership with Vercor Advisor (US) and further good
chemical contacts in the US
 Business is internationalizing
Strategic International focus
Country Focus
 Western Europe: Netherlands, Belgium, France, core basis of
team
 Central Europe: Switzerland, Austria, Germany, local people on
the ground
 Southern Europe: Spain, Italy, working experience and local
people
 Eastern Europe: Projects worked on in Hungary and Romania
 Turkey: A good network via local partners
 USA: Strategic partner Vercor advisor
CFIE team has a pan European focus and local people
Industries CFIE
Focus on CFIE’s core industries:
 Chemical (distribution companies)
 Plastics
 Transportation / Forwarding / Logistics
Specialization on chemical and plastics industry
Chemical Team CFIE
CFIE HAS 19 PEOPLE ALL ACROSS EUROPE OF WHICH 6 FOCUS ON
THE CHEMICAL MARKET
 Peter Schouten (NL): Background and M&A expert in the chemical industry
 Martin Schor (NL): Consultant in the chemical industry.
 Ralph Arnold (GE): Background in Chemistry and M&A expert.
 Bruno Zaza (SP): Analyst at Salomon Brothers Chemical M&A
 Govert Derks (NL): Financial background
 Barkan Baybogan (TU): M&A experience in the Turkish market
CFIE team has strong background in chemical industry
Chemical Team CFIE: Peter Schouten
 Peter Schouten’s portfolio as finance specialist comprised the international chemicals sector
and he was also directly involved in the stock-market flotation of Pirelli, Ares Serono, Holland
Chemical International (HCI) and the acquisition of Superfos by HCI.
 Peter was active as M & A advisor to the chemical distirbution companies such as Stokvis
Chemicaliën (acquired by Caldic) and De Monchy International
 Peter has a background in chemistry and has been active for many years in the chemical
and oil industry, as well as in banking, where he was employed as a senior financial analyst
with an emphasis on the European Chemical sector. After having gained considerable
experience in the field of M&A as Associate Director of Corporate Finance at Rabo Securities
in 2004, he embarked on his career as an independent advisor in M&A specialised in
supervising transactions focusing on the chemical sector.
CFIE team has strong background in chemical industry
9
Chemical Team CFIE: Martin Schor
 Martin Schor has been commercially and strategically active for the past 15 years on behalf
of major players on the German market such as BASF and Brenntag. Acting on behalf of
these concerns he was directly involved in national and international takeovers such as the
acquisitions by BASF of Inmont, Polysar and Mobil Chemie (Tiel)
 Martin is a business economist and has followed a number of postgraduate courses in
marketing and sales management. He has held a number of management positions in the
commercial sector, both in the chemical and the oil industry, as well as in international
wholesale. He has had many years of experience in the area of consultancy as a business
controller and strategic adviser, focusing on restructuring, mergers and take-overs.
 Since 2000 he has been active as a management consultant focusing on the chemical and
plastics industry.
CFIE team has strong background in chemical industry
10
Chemical Team CFIE: Ralph Arnold
 Ralph Arnold. Investment Banker in New York and Frankfurt. Chemistry and Chemical
(distribution) background. M&A deal experience (head of M&A, Investment Banker).
Strategy, Organization, pharmaceuticals and distribution
 MBA – Columbia University (New York)
 Head of M&A Aventis / Hoechst (FFM). Project Manager for Hoechst in the merger with
Rhone-Poulenc to Aventis. (Düsseldorf). Managing Innovation. Director of Bayer Innovation.
VC/PE Entity of Bayer (Leverkusen)
 Strong project process experience and strong financial background . Key Differentiators
industry background and experience.
CFIE team has strong background in chemical industry
11
Chemical Team CFIE: Govert Derks
 Govert Derks has more than 10 years experience in Financial Management and
international M&A. During his career Govert worked on many international M&A related
projects in the Netherlands, the UK, the USA, Germany, France, Spain, Ireland, Italy,
Hungary, Rumania and Turkey.
 Govert graduated in International Economic Studies (Macro Economics) from the University
in Maastricht. During this study he spend one year the University of Regensburg. Further,
Govert has a degree in Business Economics from the Economic Business School in
Enschede, the Netherlands.
 Govert started his career with General Electric Capital in London performing various
international assignments (US, Germany and the UK) in the financial area.
 Today Govert is the Managing Director of a Corporate Finance in Europe in the Netherlands
helping European business owners sell their companies to European buyers.
CFIE team has strong background in chemical industry
12
Chemical Team CFIE: Barkan Baybogan
 Barkan has large M&A experience in Turkey. Barkan’s main areas are Corporate Lending,
M&A, Private Equity and Project Finance.
 Having a corporate & investment banking experience with solid financial economics
background, involved in corporate lending, project in Economics from Marmara University.
Strengthened academic knowledge by postgraduate education in Johnson & Wales University
and University of South Florida.
 Barkan worked with the Industrial Development Bank of Turkey, TEB (BNP Paribas),
HSBC, Abank, Denizbank (Dexia) and MNG Bank.
CFIE team has strong background in chemical industry
13
Buyer Search
CFIE’s team is specialized in finding the right buyers:
 Direct personal contact to management of many chemical
companies
 Knowledge of chemical companies that are currently buying
 Access to both European as well as US buyers in the chemical
industry
Good contacts/understanding of chemical buyers
Process overview
Customer profile
Overview CFIE’s type of customers:
 Middle and large SME’s
 20 – 400 employees
 Revenues of 2M to 100M Euro
 Interest and potential for international buyers
CFIE is organizing cross border SME M&A deals
Characteristics Distributors:
Specialty Chemicals distributor
Marketing Driven
Commodity chemicals distributor
Logistic driven
Scope of services:
-international marketing, sales and
Scope of services:
-Focus on local and/or national market
distribution
-Exclusive supplier relationships
-Relationship with competing suppliers
-Warehouse function
Limited fixed assets
More asset intensive
All need to prove their added value
Trends in Chemical Distribution
 Consolidation in the chemical industry….
 environmental issues and IT requirements
….accelerates consolidation at chemical distributors
 Industry wants to do more business with fewer distributors
 Downturn leads to more outsourcing of the chemical industry
 Large distributors compete for growth and market share
international distributors with access to capital
are in the best position
Some Chemical References
2006
Sell mandates for three distribution companies, advisory projects, valuation project
2007
Sell mandate for two distribution companies, several buy-mandates for SME companies,
Equity financing
2008
Several concluded deals of three chemical distribution companies and search projects
2009
Involvement with troubled major chemical producers in Germany for private equity players
Joint cooperation with Solvingh on the sale of an environmental consultancy company
Focus on the portfolio of private equity players in the Benelux and abroad and acting as
match maker. However, several projects were postponed or cancelled
2010
Involvement with cross-boarder deals: the acquisition of a UK distributor for a Dutch
International distributor, potential Turkish candidates for a major distributor
Current Projects
 On going buy side assignments for 2 companies in the chemical
distribution markets
 Sell Side Mandate for a chemical plant in Hungary
 Pharma- product manufacturer Italy, Milan
 Large number of search requirements strategic buyers
CFIE Chemical team knows which buyers are currently interested