Element Solutions Inc (NYSE:ESI), a global and diversified specialty chemical technology company, announced today that it has signed a definitive agreement to acquire EFC Gases & Advanced Materials for approximately 12x forecast 2026 adj. EBITDA in cash, subject to adjustments. The transaction is expected to be completed by the end of 2025, subject to certain regulatory approvals and customary closing conditions.
EFC provides high-purity specialty gases and other advanced materials to a range of fast-growing and highly complex industries, including semiconductor manufacturing, aerospace, and electrical infrastructure. EFC’s commitment to excellence is underscored by rigorous global sourcing standards and state-of-the-art metrology processes, ensuring unparalleled product purity and integrity. Additionally, EFC offers tailored gas recovery and recycling systems, helping clients achieve new levels of operational efficiency and sustainability.
The business has grown at a revenue CAGR in excess of 15% since 2009 with growth accelerating this year primarily in semiconductor applications. EFC has grown the number of semiconductor product qualifications in its portfolio by more than 40% since 2023.
CEO Benjamin Gliklich said, “EFC is an outstanding business. It offers a highly specialized portfolio of products and solutions that support the fastest growing end-markets in the physical economy. Their focus on niche, high value products and people-centricity have yielded remarkable momentum and a pipeline of customer qualifications that we anticipate will translate into substantial earnings growth.
ESI shares tumbled 28 cents, or 1%, early Tuesday to $26.84.
Related Stories
