Solenis-Diversey deal highlights trend for strategic, sustainability-focused acquisitions

Solenis, a specialty chemicals company serving water-intensive industries, wrapped up its $4.6 billion acquisition of Diversey Holdings, Ltd., a supplier of hygiene, infection prevention, and cleaning products to global pharmaceutical companies.

This acquisition comes amid a trend of smaller, more strategic M&A activity in the pharma sector during the second quarter of 2023. While the Solenis-Diversey deal bucks this trend in terms of deal size, it aligns with the strategic nature of recent acquisitions in the industry.

The merger creates a global firm specializing in integrated water and hygiene that operates in more than 130 countries with 71 sites and 15,000 employees. 

Before the acquisition, Solenis already served a diverse number of industrial sectors, including pulp, paper, oil and gas, chemical processing, mining, biorefining, power and municipal markets. 

Solenis-Diversey deal could be harbinger of more chemicals sector M&A deals

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Pharma M&A resurgence: An overview of recent deal-making trends

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After something of a slow year in 2022, mergers and acquisition (M&A) activity is ramping back up in the pharma and biotech sector. There have been several especially large M&A deals in the past few months. Examples include Pfizer’s (NYSE:PFE) $43 billion acquisition of Seagen, and Merck’s (NYSE:MRK) $11 billion purchase of Prometheus Biosciences. In December 2022, Amgen (Nasdaq:AMGN) said it would scoop up Horizon Therapeutics for almost $28 billion.

What’s fueling the M&A uptick?

Factors driving the uptick include an upcoming patent cliff from 2026 to 2029, pricing pressure from the U.S. Inflation Reduction Act and lower equity valuations, according to Moody’s Health Care Quarterly: April 2023.

For instance, the Amgen acquisition of Horizon could help the firm offset a potential $30 billion sales shortfall it may face as a result of growing b…

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Prominent pharma M&A deals to watch in Q1 2023: Pfizer, Sanofi and others on the hunt

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After a relatively quiet 2022, 2023 is anticipated to be a more robust year for pharma M&A activity. In recent months, players such as Pfizer (NYSE:PFE), Sanofi (NYSE:SNY), Chiesi, AstraZeneca (LON:AZN) and Amgen (Nasdaq:AMGN) have unveiled acquisition plans that could reshape the landscape of the sector. This article delves into the details of prominent recent M&A deals and explores their potential impact on the future of the pharma sector.

Pfizer plans to acquire Seagen

New York City–based Pfizer has recently been on a shopping spree, scooping up Trillium Therapeutics, Biohaven, Global Blood Therapeutics, and Arena Pharmaceuticals. Now, the company has unveiled its plans to acquire Seagen (Nasdaq:SGEN), a Seattle biotech firm focused on oncology. The proposed acquisition, valued at $43 billion, awaits regulatory approval. Pfizer plans to offer $229 per share…

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