Ardian Buys 50% Stake in Ex-Dow Unit Angus From Golden Gate

(Bloomberg) -- Ardian is buying a 50% stake in Angus Chemical Co. in a deal valuing the company at $2.25 billion including debt.

The French private equity firm is acquiring the stake from Golden Gate Capital, which will retain a 50% share, according to a statement. Ardian prevailed in an auction process that included Blackstone Group Inc., according to the people familiar with the matter who asked not to be identified because it was private.

A representative for Blackstone declined to comment.

Angus was carved out of Dow Chemical Co. in 2015, with Golden Gate paying about $1.2 billion for the Buffalo Grove, Illinois-based maker of nitroalkanes, which are used widely in coatings, electronics and water treatment.

“With Ardian’s global reach and together with Golden Gate Capital, we plan to accelerate the company’s growth and provide Angus’s customers with a compelling range of products,” Thibault Basquin, head of Americas investments at Ardian Buyout, said in the statement.

San Francisco-based Golden Gate Capital pushed ahead with the sale plans after putting them on hold earlier in the year. After a lull imposed by the coronavirus pandemic, the chemical industry is undergoing a surge in M&A as restrictions ease on visiting sites for due diligence and holding face-to-face negotiations.

One of Angus’s growth areas has been biochemicals used as stabilizers in the pharmaceuticals and agricultural industries, in fields such as cell cultures and fermentation. Angus’s derivatives are used in hair-care and cosmetic products to adjust alkaline levels.

Angus’s competitors include Novasep, which has made bolt-on acquisitions to expand its drug ingredients business.

Ardian was advised on the deal by Citigroup Inc. and Guggenheim Securities, according to the statement. Morgan Stanley and JPMorgan Chase & Co. served as Golden Gate Capital’s advisers.

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