Specialty chemicals supplier Cognis has recently announced that it has invited mergers and acquisitions specialists Lincoln International to conduct a review of the strategic options for its Pulcra Chemicals subsidiary.

Cognis’ Process Chemicals strategic business unit became a legally separate company, trading under the name of Pulcra Chemicals. This step was taken as a result of Cognis’ decision to concentrate on the three core business areas of Care Chemicals, Nutrition & Health and Functional Products. Pulcra Chemicals supplies process chemicals to the textile and leather industries. Lincoln International is an investment bank that specializes in M&A transactions, and it has been tasked with finding a suitable investor or partner for Pulcra Chemicals who can help it to develop its business successfully.

Pulcra Chemicals develops and markets products tailored to individual specifications at a competitive cost, backed with a full advisory and after-sales service for customers. The company operates production sites and service centers in Germany, Turkey, Italy, Spain, Mexico, Brazil, China, India, Indonesia and the USA.

In 2006, the Process Chemicals strategic business unit recorded sales of textile and leather products worth 258 million euros, an increase of 4.1% on the previous year. This growth was primarily driven by strong demand in the Asia-Pacific region.

Cognis is a worldwide supplier of innovative specialty chemicals and nutritional ingredients, with a particular focus on the areas of wellness and sustainability. The company employs about 8,000 people, and it operates production sites and service centers in 30 countries.

The subsidiary Pulcra Chemicals offers specialized chemical products and process expertise to customers in the fiber, textile, and leather industries. Cognis also holds a 50%stake in the joint venture Cognis Oleochemicals. In 2006, Cognis recorded sales of 3.37 billion euros and an Adjusted EBITDA (operating result) of 394 million euros.(www.cognis.com)

Cognis is owned by private equity funds advised by Permira, GS Capital Partners, and SV Life Sciences. In 2006, Cognis recorded sales of 3.37 billion euros and an Adjusted EBITDA (operating result) of 394 million euros.