MINNEAPOLIS, Nov. 20 /PRNewswire-FirstCall/ -- According to the American
Chemistry Council (ACC), an industry trade group based in Arlington, Va.,
chemical industry shipments reached $458.4 billion in 2002. The industry has
enjoyed substantial growth over the past half century and has seen increased
consolidation over the past decade. Within the broader industry, the specialty
chemicals segment continues to experience relatively higher growth and exhibit
favorable characteristics that support further consolidation.
In a new in-depth report, entitled Specialty Chemical Industry Overview,
Robert Frost, vice president in U.S. Bancorp Piper Jaffray's Middle Market
Mergers and Acquisitions (M&A) group, provides an overview of the specialty
chemical industry, with a particular focus on the dynamics and trends that are
shaping M&A activity in the sector. He feels the following seven specialty
chemical sectors are particularly fertile with respect to ongoing middle
market M&A activity:
1) adhesives and sealants
2) specialty agricultural chemicals
3) electronic chemicals
4) industrial & institutional cleaning chemicals
5) paints & coatings
6) plastic additives
7) water treatment chemicals
"To varying degrees, each of the seven sectors we have highlighted in this
report possess characteristics that suggest a fertile environment for ongoing
M&A activity; notably many of these sectors remain highly-fragmented, enjoy
relatively higher growth rates and possess market fundamentals that support
further consolidation," said Frost.
In addition, Frost believes there are a number of characteristics and
trends impacting the specialty chemical industry. These characteristics and
-- market fragmentation,
-- need for financial resources to support research and development,
-- a renewed focus on core businesses and
-- increasing importance of size and scale.
"We believe that many of these dynamics are placing pressure on small,
regional firms and favoring those mid-size to large multinational companies
with solid acquisition platforms," said Frost. "In addition, we feel that
these dynamics will lead to increased M&A activity, especially within the
middle market." Frost believes other factors such as the return of strategic
buyers, increased interest in specialty chemical industry on the part of
private equity firms and improving valuations have already begun to set the
stage for a pickup in activity.
To receive a copy of Specialty Chemical Industry Overview, clients should
contact Robert Frost at firstname.lastname@example.org or 612-303-8248; members of the media
should contact Dana Wade at email@example.com or 415-277-1556.
U.S. Bancorp Piper Jaffray, a subsidiary of the consolidated group of U.S.
Bancorp (NYSE: USB), is a focused securities firm comprised of two revenue-
generating segments -- Capital Markets and Private Client Services. Clients
of both segments are supported by Investment Research, an independent group
reporting to the CEO. The firm provides a full range of investment products
and services to individuals, institutions and businesses. The firm has over
124 offices in 25 states across the country. U.S. Bancorp offers a
comprehensive range of financial solutions through U.S. Bank, U.S. Bancorp
Asset Management, U.S. Bancorp Investments and U.S. Bancorp Piper Jaffray. For
more information on U.S. Bancorp Piper Jaffray, visit www.piperjaffray.com .
SOURCE U.S. Bancorp Piper Jaffray