Deal Timeline

Plotted by close date where disclosed, otherwise announcement. Select any marker to jump to the deal entry.

The Acquisition Playbook.

Three patterns run through AdvanSix's acquisitions — what it looks for, how it pays, and how it folds in what it buys.

01
Acquisition criteria
A highly selective, bolt-on acquirer.
AdvanSix — spun off from Honeywell in 2016 — states in its filings that it pursues a “highly-selective acquisition and alliance strategy” to supplement organic growth. It has completed just two acquisitions as a public company, both small-to-mid-sized tuck-ins funded largely with cash rather than transformational, debt-heavy deals.
Commonwealth Industrial Services, Inc. (CIS) — ammonium sulfate packaging, warehousing and logistics assetsU.S. Amines Limited
02
Capital deployment
Deepening the ammonium sulfate value chain.
The 2021 Commonwealth Industrial Services asset deal added packaging, warehousing and logistics near AdvanSix's Hopewell, Virginia operations — the world's largest single-site ammonium sulfate producer — letting the company control more of how its fertilizer is packaged and shipped to growers.
Commonwealth Industrial Services, Inc. (CIS) — ammonium sulfate packaging, warehousing and logistics assetsU.S. Amines Limited
03
Integration approach
Moving up the value chain into specialty chemistry.
The 2022 U.S. Amines acquisition, AdvanSix's largest, added alkyl and specialty amines serving agrochemicals, pharmaceuticals and water treatment — diversifying the company beyond commodity nylon and ammonium sulfate into higher-value intermediates, consistent with management's stated M&A framework of value-chain integration and expansion into high-value applications.
Commonwealth Industrial Services, Inc. (CIS) — ammonium sulfate packaging, warehousing and logistics assetsU.S. Amines Limited

The Full Deal Book

2 acquisitions — each with the deal value, financing structure, target revenue, and executive commentary where disclosed.

01 Commonwealth Industrial Services, Inc. (CIS) — ammonium sulfate packaging, warehousing and logistics assets · Hopewell, Virginia, USA $9.5M
Announced Jan 2021 Closed Jan 2021 Asset purchase
ammonium sulfate packagingwarehousing and logistics services

AdvanSix acquired certain assets of Commonwealth Industrial Services, Inc. (CIS), an ammonium sulfate packaging, warehousing and logistics services business based in Hopewell, Virginia. AdvanSix disclosed the deal on January 25, 2021 alongside an update on its sulfur-nutrition strategy, and its Form 10-K reports the assets were acquired in January 2021 for approximately $9.5 million. The added packaging and warehousing capabilities support direct supply of packaged ammonium sulfate to customers, primarily across North and South America, from AdvanSix's Hopewell-area operations.

02 U.S. Amines Limited · United States — manufacturing facilities in Bucks, Alabama and Portsmouth, Virginia $97.5M
Announced Feb 2022 Closed Feb 2022 All cash
alkyl and specialty (allyl) amines serving agrochemicalspharmaceuticalswater treatment and other high-value applications

AdvanSix acquired U.S. Amines Limited, a North American producer of alkyl and specialty (allyl) amines used in agrochemicals, pharmaceuticals and other high-value end markets. AdvanSix announced the agreement on February 18, 2022 alongside its fourth-quarter and full-year 2021 results, describing an all-cash transaction with an estimated net purchase price of approximately $100 million; the acquisition closed in February 2022, and AdvanSix's Form 10-K reports a purchase price of approximately $97.5 million, net of cash acquired. U.S. Amines employed roughly 50 people at manufacturing facilities in Bucks, Alabama and Portsmouth, Virginia, with estimated 2022 revenue of about $70 million. It was AdvanSix's second acquisition and its largest to date. approximately $97.5 million, net of cash acquired (announced as an all-cash transaction with an estimated net purchase price of approximately $100 million).

Why it was attractive
  • A unique platform in the agrochemicals space with complementary
  • cohesive fit to AdvanSix's existing portfolio and opportunities for sales synergies and incremental growth through higher asset utilization
  • new markets and organic investment
U.S. Amines is a complementary and cohesive fit with our existing portfolio and supports further penetration in high-value end markets and applications. We will leverage our core strengths across its unique manufacturing capabilities to enable sales synergies and unlock incremental value. We see robust opportunities for incremental growth through increased utilization of assets, new market opportunities and high-return organic investments.Erin Kane — President and CEO, AdvanSix
Post-close · earnings-call commentary

AdvanSix recorded finite-lived intangible assets of approximately $34 million (customer relationships of approximately $33 million and trademarks of approximately $1 million), amortized over estimated useful lives of 20 and 5 years respectively, with the residual purchase price allocated to goodwill.

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