Chemogas acquired by US based Balchem Corporation
Grimbergen, Belgium, May 2, 2019. The management of Chemogas, a leading international provider of packaged chemical specialty gases and related services, and Benelux private equity firm Gilde Equity Management today announced the agreement to sell Chemogas to Balchem Corporation, a US-based listed company engaged in the development, manufacturing and marketing of specialty ingredients. Chemogas is one of the premier global providers of packaged ethylene oxide to the medical sterilization industry. Closing of the transaction is still subject to the completion of customary closing conditions.
Chemogas is a leader in the packaging and distribution of a wide variety of specialty gases, most notably ethylene oxide for medical device sterilization, primarily in the European and Asian markets. Through its operational and logistical excellence, Chemogas supports its customers’ needs across more than 70 countries worldwide. Facilitated by majority shareholder Gilde Equity Management, Chemogas was carved- out of The Linde Group in 2016, which owned Chemogas for 26 years. Since the carve-out, growth has been realized on multiple fronts, including the strategic acquisition of Malaysia-based Stereo in 2018 as a stepping stone in the high growth Asia-Pacific region.
Dirk Battig, CEO of Chemogas-Group, is very pleased with this transaction: “Supported by majority shareholder Gilde, we have further internationalized our footprint with the acquisition of Stereo Group in Asia-Pacific. We are now ready to leverage our leading position in Europe and Asia-Pacific and team up with Balchem, to further strengthen our position as a true global reference supplier of packaged specialty gases. We are excited to take on this next step together with them.”
Frederic Van den Weghe, Partner at Gilde Equity Management, comments: “We supported Chemogas management in their management buy-out with a clear goal to facilitate Chemogas’ successful international growth path and its strategy of tapping into new product segments and targeting new geographies, fueled by a growing market share of ethylene oxide for the global sterilization market. The acquisition of Stereo in 2018 was a good example of our strategy, where we created a local hub in the high growth APAC region and further strengthened Chemogas’ foothold as an international reference supplier of packaged specialty gases. We see a strong complement between Chemogas and Balchem and foresee a bright future for Chemogas and its people under this new umbrella.”
Through this acquisition, Balchem significantly expands its geographic presence in the packaged ethylene oxide market, enabling the company to offer worldwide service and support to its medical device sterilization customers. The Chemogas sites in Europe and Asia will form a global network of facilities when combined with Balchem’s sites in the United States.
Ted Harris, Chairman, CEO, and President of Balchem said, “With the acquisition of Chemogas, Balchem is now the clear global leader in the critical supply of ethylene oxide to the medical device sterilization industry”. Mr. Harris added, “We are very excited to add Chemogas’ team of talented employees and their extensive packaging and supply chain capabilities to Balchem. The combination of our two companies will significantly enhance our ability to service and support our customers on a more global basis.”
About Gilde Equity Management (GEM) Benelux
Gilde Equity Management (GEM) Benelux is an independent private equity firm with over EUR 1 billion in
assets under management. It is one of the leading investors in medium-sized companies in the Benelux
countries and has achieved successful international growth for many companies. Examples of investments
of Gilde are Belgium based Actief Interim, one of the leading independent staffing agencies in Western-
Europe; Fruity Line, a producer of premium freshly squeezed fruit and vegetable juices and smoothies; EVBox,
the leader in charging solutions for electric vehicles with the largest installed base globally, spanning
840 cities in 24 countries; conTeyor, a leading engineered packaging solution provider for the automotive
industry and Dunlop Protective Footwear, the oldest manufacturer of boots in the Netherlands that has
become the global market leader. In Belgium Gilde is also active through among others Kwantum and
Leenbakker, operating 80 retail locations with a complementary product offering of affordable home
furnishings and interior accessories. For more information please visit www.gembenelux.com.
Frederic Van den Weghe, Partner Gilde Equity Management
Phone: +32 3 808 49 81
Dirk Battig, CEO Chemogas
Phone: +32 22 578 851