Alantra advises Elkem ASA on the acquisition of Chinese silicone manufacturer Polysil

Apr 2020

Buy-side advisory

Value RMB 941 million

Shanghai – Alantra, the independent global mid-market investment banking, alternative asset management and credit portfolio advisory firm, has advised Elkem ASA, one of the world’s leading suppliers of silicon-based advanced materials, on the acquisition of China Polysil Chemicals (“Polysil”), a leading Chinese silicone manufacturer. The companies have agreed an enterprise value for Polysil of up to RMB 941 million, including potential earn-out. All regulatory approvals for the acquisition have been concluded and the settlement of the transaction took place 1 April 2020.

Polysil has more than 350 employees located in Zhongshan in Guangdong, China. The company has leading technology positions in production and development of Heat Cured Rubber (HCR), Liquid Silicone Rubber (LSR) and specialty resin and Pressure Sensitive Adhesives (PSA). Polysil has two production facilities and a research and development centre with more than 50 scientists.

In 2019, Polysil is estimated to generate a total operating revenue of RMB 612 million (around $88 million) with an EBITDA of RMB 110 million ($16 million).

Established in 1904, Elkem is one of the world’s leading companies in the environmentally responsible manufacture of metals and materials. Elkem is a fully integrated producer with operations throughout the silicon value chain from quartz to silicon and downstream silicone specialties as well as specialty ferrosilicon alloys and carbon materials. Elkem consists of four business areas: Silicones, Silicon Materials, Foundry Products and Carbon. Headquartered in Oslo, the company owns 27 production sites and has more than 6.200 employees.

The acquisition of Polysil is the second China chemical-related buy-out transaction advised by Alantra in the last 12 months.