The founders of Chemco Ireland have agreed to a takeover by funds advised by London-based Basalt Infrastructure Partners.
Terms of the deal were not disclosed, but it is expected to close during the current quarter, subject to CCPC and FDI clearance.
Chemco primarily serves the semiconductor, pharmaceutical, food and industrial sectors in Ireland, providing specialist chemical logistics, storage and distribution services.
The company, which is based close to Dublin, has long-term contracts in place with clients and plays a critical role in their supply chains.
Its asset base is comprised of highly technical and critical infrastructure, including temperature-controlled storage facilities and ISO tank container storage areas.
In a statement, Basalt said it believes that Chemco is uniquely positioned to benefit from strong tailwinds in its target markets and to support the growing requirements of its customers for specialised chemical logistics and distribution services.
“Chemco is the leading provider of specialist logistics services to the growing semiconductor and pharmaceutical sectors in Ireland, and its highly specialised and long term contracted services are a critical component to its customers”, said John Hanna, managing partner of Basalt.
“Basalt is excited to partner with management to support the company’s growth.”
Chemco’s existing management team will remain in place under Basalt's ownership. The company reported a profit of €21.3m in 2024 from turnover of €74.9m and has equity of €55.5m.
“I am hugely proud of the company that our team has built since Chemco was founded in 1992, and am extremely pleased that the next stage of the company’s growth will be driven by the ongoing management team with the support of an investor of the calibre of Basalt”, said retiring founder and chief executive Des McDonald.
TowerView is acting as the exclusive financial advisor, and A&L Goodbody is acting as legal advisor to Basalt.
DC Advisory is acting as the exclusive financial advisor, and McCann Fitzgerald is acting as legal advisor to Chemco.
Basalt advises infrastructure equity investment funds focusing on mid-market investments in utilities, power, transport and digital infrastructure in North America and Europe. The funds have invested $7bn across 31 investments, including 18 European investments representing $3.6bn.
(Pic: Chemco Ireland)
