Chemtrade Logistics Income Fund announced an agreement to acquire Polytec, Inc. for $150 million. Polytec is a southeastern U.S.–based provider of turnkey water treatment solutions. The purchase price reflects a multiple of approximately 6.5x LTM Adjusted EBITDA.
Chemtrade will finance the acquisition through its existing credit facility. It expects to close the deal in the fourth quarter of 2025, subject to regulatory approvals and customary closing conditions. Even after the transaction, Chemtrade expects to maintain a strong liquidity position and keep leverage within its target range.
Building on Polytec’s Three-Decade Legacy
As per the company press release, Polytec has built a strong reputation. The company delivers complete water treatment solutions across a diverse customer base. The company also has a strong presence in the food-processing industry and the municipal market. By adding Polytec’s platform to its portfolio, Chemtrade will expand its water treatment chemicals business. The Fund plans to leverage its North American footprint and internal systems to accelerate Polytec’s growth. It also aims to create cross-selling opportunities across the U.S. and Canada.
Strengthening Chemtrade’s Vision 2030
Scott Rook, President and CEO of Chemtrade, emphasized, “The transaction will enable Chemtrade to expand its footprint in water solutions for the food-processing industry and municipal markets while also adding to our range of products. Polytec’s founder Jack Harmon has built a company with the reputation of providing the best quality service and products. It is an excellent addition to Chemtrade’s capabilities, broad spectrum of customers, logistics network, and technical expertise. Furthermore, the acquisition of Polytec is well-aligned with our strategy of growing the water business. It also represents an important step towards delivering on the growth pillars of Chemtrade’s Vision 2030.”
Financial Discipline Supports Growth
Chemtrade’s Chief Financial Officer, Rohit Bhardwaj, highlighted, “Our successful leverage reduction strategy has provided Chemtrade with the financial flexibility to pursue compelling growth opportunities such as the acquisition of Polytec. We continue to maintain a conservative balance sheet and leverage within our target range without diluting our unitholders. Our capital deployment decisions remain grounded in financial discipline and are aligned with our goal of driving sustainable earnings growth and attractive total unitholder returns.”
Ensuring a Smooth Transition
Polytec’s founder, Jack Harmon, stated, “I founded Polytec over 30 years ago with a commitment to provide customers with high-quality service, products, and technology. Over the years, we invested in manufacturing facilities across four Southeastern states to support customer programs throughout the USA and internationally. The combination of Polytec and Chemtrade will reinforce our manufacturing and service capabilities as we aim to use our knowledge, service, and products to keep our customers compliant with water quality regulations. Chemtrade shares a similar vision, and I am confident that the combination of Polytec’s unique water treatment solutions and Chemtrade’s footprint will further accelerate our growth and the quality service we provide to our customers.”
