High Purity & Electronic Chemicals
“High purity” chemicals exist for good reasons: usually such chemicals are used in pharmaceuticals, life sciences, electronics, food ingredients or other applications where the presence of contaminants can spoil the efficacy of the product or compromise their safety. Manufacturing these products requires a high level of engineering and formulation expertise, quality control, and constant monitoring of manufacturing conditions to maintain narrow specification tolerances. Manufacturers specializing in high purity chemicals invest heavily in their plant and capabilities, and are usually highly profitable. Because of this, they often have protected market positions and loyal customers. For strategic companies or private equity firms wanting to enter or expand within these markets, acquisitions are often the only reasonable choice.
Grace Matthews has worked with a number of companies that manufacturing high purity chemicals that sold into the life sciences markets. Our experience has given us a deep understanding of the unique nature of these businesses and the special intellectual property, technological, regulatory, and other challenges that typically come up in transactions.