PureTech Scientific, a U.S.-based company backed by Iron Path Capital, acquired the glycolic acid business from The Chemours Company for $137 million on August 1, 2023.
| Acquirer | PureTech Scientific (US) |
|---|---|
| Target | The Chemours Company Glycolic Acid business (US) |
| Deal value | $137 million |
| Type of transaction | Carve-out |
| Closing date | August 1, 2023 |
| Advisors | Buy-side: Foros, ROTH Capital Partners; Sell-side: Grace Matthews; Legal buy-side: McDermott Will & Schulte |
The transaction provides PureTech Scientific with a dedicated platform to develop glycolic acid-based products for dermatological and cosmetic applications. Glycolic acid is a key ingredient in skincare products, offering exfoliation benefits.
Strategic Rationale
PureTech Scientific aims to leverage the acquired business's technology and market position to expand its product portfolio within the personal care industry. The deal allows PureTech Scientific to capitalize on growing consumer demand for effective skin care solutions that incorporate active ingredients like glycolic acid.
Financial Context
The Chemours Company, a leading chemical company with a broad range of products and services, divested its glycolic acid business as part of its strategy to focus resources on high-growth areas. Grace Matthews served as the financial advisor for The Chemours Company during this carve-out process.
PureTech Scientific is backed by Iron Path Capital, a growth equity firm that invests in innovative companies across various sectors including healthcare and consumer goods. With this acquisition, PureTech Scientific further solidifies its position in the growing personal care chemicals market.
Outlook
The deal marks a significant milestone for both parties involved. For PureTech Scientific, it represents an opportunity to enhance its product offerings and expand into new markets. Meanwhile, The Chemours Company benefits from streamlined operations and resources focused on strategic growth areas.