DKSH has signed the acquisition of Terra Firma, a leading distributor of specialty chemicals in North America. With this acquisition, DKSH expands its platform of the Business Unit Performance Materials to the USA and Canada. The transaction is an important step in DKSH's strategy to build a global distribution platform for specialty chemicals and ingredients.

Zurich, Switzerland, September 22, 2022 – With the acquisition of Terra Firma, DKSH creates a scalable platform for growing its presence in Performance Materials in North America.

Terra Firma has national coverage in the USA and Canada and is representing premier suppliers in its core segments of CASE (Coatings, Adhesives, Sealants, and Elastomers), plastics and construction, agrochemicals, health and nutrition, as well as personal care. The addition of a strong player in the North American Industrial specialty chemicals distribution sector is a major contribution to DKSH’s Performance Materials business and is complementary to DKSH’s existing specialty industrial business globally. DKSH’s expertise in the distribution of life sciences ingredients offers a strong base to expand further into food, pharma, and personal care in North America.

Terra Firma currently operates with around 100 highly skilled professionals across the region and has offices in Los Angeles, Dallas, Baltimore, and Toronto. Terra Firma expects net sales of around USD 240 million in 2022. The transaction, which is expected to close towards the end of year, will be valued at USD 360 million enterprise value. DKSH will acquire at least 80% of Terra Firma with the remainder held by the company’s existing management team. The transaction is EPS-accretive and will be financed via debt and cash.