18 Sept 2025
Rome: Dorf Ketal, a leading global specialty chemicals manufacturer and supplier, is in advanced negotiations to acquire Italmatch Chemicals SpA of Italy for $1.6 billion. The deal is reportedly being facilitated by the current owners, Bain Capital, according to sources familiar with the discussions.
Rome: Dorf Ketal, a leading global specialty chemicals manufacturer and supplier, is in advanced negotiations to acquire Italmatch Chemicals SpA of Italy for $1.6 billion. The deal is reportedly being facilitated by the current owners, Bain Capital, according to sources familiar with the discussions.
Both companies have entered exclusive talks and are optimistic about finalizing the shareholder agreement (SPA) in the coming weeks, with a formal announcement expected by the end of the month. If completed, this acquisition would mark Dorf Ketal’s largest purchase to date, underscoring the ongoing consolidation trend in the specialty chemicals sector.
Recent notable transactions in the sector include:
Abu Dhabi National Oil Co acquiring Germany’s Covestro AG for €12 billion in 2024
Lone Star selling specialty chemicals firm AOC to Nippon Paint Holdings Co
JSW Paints acquiring a major portion of Akzo Nobel’s India operations for $1.6 billion
Founded in 1992 by brothers Subodh and Sudhir Menon, Dorf Ketal has established itself as a key player across the hydrocarbons chemicals value chain, spanning oil and gas exploration, refining, petrochemicals, and downstream retail fuels. The privately held company reported domestic revenue of Rs 5,479 crore in FY24, with Rs 2,961.3 crore generated in the first half.
While both Subodh Menon and Bain Capital have declined to comment, Italmatch has not responded to inquiries.
Strategic Rationale
The acquisition is aimed at diversifying Dorf Ketal’s product portfolio and expanding its specialty chemicals offerings. Italmatch, headquartered in Genoa, operates across four main segments:
Water and oil treatment
Lubricants, flame retardants, and plastic additives
Performance products
Personal care
Under CEO Sergio Iorio, Italmatch has focused on specialty chemical additives, particularly flame retardants and fabric softeners, and maintains a strong global footprint with 20 manufacturing plants worldwide, including nine in the EU. This complements Dorf Ketal’s international presence.
In FY24, Dorf Ketal had attempted to acquire Pune-based Aquapharm Chemicals for its water treatment business but lost out to Phillips Carbon Black Ltd (PCBL). The company had also filed a Draft Red Herring Prospectus (DRHP) for an IPO but withdrew it amid the ongoing transaction. CEO Iorio is expected to roll over his stake to maintain management continuity.
An insider highlighted that Italmatch’s expertise in water treatment chemicals for ethanol and oil refining industries is particularly attractive for Dorf Ketal, representing a rapidly growing market segment.
Growth Through Acquisitions
Dorf Ketal has a long history of expansion via acquisitions, completing at least a dozen purchases since 2003, including units from ExxonMobil and Clariant, gaining significant R&D capabilities and intellectual property. In 2022, it expanded into Latin America, targeting sustainable chemistry derived from plant-based sources.
Italmatch, acquired by Bain Capital in 2018 and partially sold to Saudi Arabia’s Dussur, has also grown through strategic acquisitions, including a majority stake in Brazil’s Alcolina, a water treatment specialist for bioethanol and industrial applications. These moves have contributed to a doubling of EBITDA.
In FY24, Italmatch reported revenue of €686 million, with an 8% increase in sales volumes, and adjusted EBITDA rising from €115 million to €134 million, while contribution margin increased from €251 million to €276 million.
India to Italy: Synergies and Market Impact
Italmatch has consistently delivered EBITDA margins of 20–21% across its operations. Dorf Ketal’s strengths in R&D and specialty products, primarily built through acquisitions, create significant entry barriers for competitors.
Morgan Stanley is advising Dorf Ketal and underwriting the financing. Potential synergies include relocating some EU-based manufacturing and optimizing production. Dorf Ketal, now a ‘wells-to-wheels’ player, operates manufacturing plants in India, Brazil, and Canada, with R&D units in India and Singapore.
Navroz Mahudawala, founder of Candle Partners, noted that global specialty chemical deals of this scale typically range 10–14x EV/EBITDA, but current market conditions may allow for more favorable pricing.
The global specialty chemicals market has grown from $1.03 trillion in 2021 to $1.14 trillion in 2023 and is projected to reach $1.43 trillion by 2028, driven by industries including automotive, construction, electronics, pharmaceuticals, and food & beverages. Europe remains a major market for specialty chemicals.
The detailed article is published by https://vitrina.ai/ can be accessed from https://vitrina.ai/blog/dorf-ketal-finds-a-match-in-italmatch-eyes-16-bn-buyout-from/?utm_source=chatgpt.com
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