Arxada AG, a global leader in specialty chemicals, completed the acquisition of Enviro Tech Chemical Services Inc., effective December 22, 2021.
Enviro Tech is a manufacturer of proprietary and high-efficacy antimicrobial and biocidal products.
The acquisition is the second strategic deal by Arxada, formerly known as Lonza Specialty Ingredients (LSI), in its first six months as an independent company. Arxada is owned by private equity funds Bain Capital and Cinven.
Enviro Tech brings an innovative antimicrobial and biocides platform with a broad IP portfolio. It has robust and complementary distribution channels and deep customer relationships across a range of end-markets with strong growth prospects.
The acquisition will create a new, complementary business line in Arxada’s Microbial Control Solutions (MCS) business. It will have a focus on peracetic acid (PAA), bromines, and specialty products, notably for the food and beverage, agriculture, and wastewater treatment segments.
Arxada will benefit from Enviro Tech’s leadership in innovation and focus on specialty formulations, as well as its effective solutions. In particular, Enviro Tech’s capabilities in PAA, an environmentally sustainable alternative to chlorine, will be highly complementary to Arxada’s existing chemistries for the hygiene market. This will serve as a strong basis for future growth across the food and beverage end-market.
The acquisition will also enhance Arxada’s manufacturing footprint through the addition of three large-scale manufacturing facilities in strategic locations in the US: Modesto, CA; Helena, AR; and Levelland, TX. Each facility has available capacity for existing and new products, and will benefit from Arxada’s scale and operational expertise.
“The acquisition of Enviro Tech is another important and strategic deal for Arxada as we extend our position within the microbial control industry,” said Marc Doyle, chief executive officer, Arxada. “Enviro Tech brings direct access to the USD 6 billion food and beverage hygiene market and adds capabilities in sustainable and highly complementary chemistries. This is our second strategic transaction in our first six months as an independent company, and further reinforces our commitment to adding new products and end-markets to our growing microbial control solutions portfolio.
“Enviro Tech’s strong culture of innovation is a great fit with Arxada’s strategic plans to expand our MCS capabilities and to develop unique solutions to meet our customers’ needs and drive our future growth.
“We welcome our new colleagues at Enviro Tech to build on our combined innovation capabilities to create new, sustainable products. This is a key focus area as we look to reduce the environmental impact of our products, while still maintaining high standards of quality and performance.”
Mike Harvey, founder and former CEO, Enviro Tech, said, “Enviro Tech has had innovation at the heart of its operations throughout its 30-year history, with a strong track record of outstanding performance and growth. Our entrepreneurial approach and fast-paced innovation strategy, coupled with Arxada’s operational expertise and scale, will enable us to develop new, sustainable solutions for our customers. Together, we can continue to lead the way in pioneering innovative solutions in the specialty chemicals market.”
Mike Harvey joins Arxada as senior fellow in the technology & regulatory organization. Brent Bankosky, former president of Enviro Tech, will lead the newly created business line.
Kirkland & Ellis and Baker McKenzie are acting as legal advisors, and Deutsche Bank as financial advisor to Arxada and its owners Bain Capital and Cinven.
Capstone Partners are acting as strategic advisors, and Weintraub Tobin Chediak Coleman Grodin as legal advisor to Enviro Tech.