International. Terra Firma has national coverage in the U.S. and Canada and represents top-tier suppliers in its core CASE segments (coatings, adhesives, sealants and elastomers).
DKSH will acquire at least 80% of Terra Firma and the rest will be held by the company's existing management team. The transaction generates earnings per share and will be funded by debt and cash.
DKSH CEO Stefan Butz commented: "Expanding our presence in the North American market has been a strategic focus for our Performance Material business."
"Terra Firma's teams operate from coast to coast and will accelerate our expansion into the North American specialty chemicals distribution market, while providing its customers with access to our global network. The acquisition of Terra Firma is a milestone in DKSH Performance Materials' transformation to become a global player," added Butz.
Terra Firma currently operates with around 100 highly skilled professionals throughout the region and has offices in Los Angeles, Dallas, Baltimore and Toronto.
Terra Firma expects net sales of around US$240 million in 2022. The transaction, which is expected to close by the end of the year, will have an enterprise value of $360 million.
Terra Firma CEO Tim Fetters said: "Terra Firma has earned an excellent reputation in the market by delivering value and significant growth to its customers and suppliers. By joining DKSH, we will be able to further leverage our growth platform."