EPCA ’15: Distributor 2M Holdings plans partial IPO for 2017

BERLIN (ICIS)—UK-headquartered chemicals distributor, 2M Holdings, plans to become a publicly traded company through a partial initial public offering (IPO) targeted for October 2017.

Mottie Kessler, chairman and CEO of 2M Holdings, said access to public markets would enable him to access new sources of funding to accelerate growth. He was speaking on the sidelines of the 49th European Petrochemical Association (EPCA) meeting.

He said: “Longer-term we continue to plan for a partial IPO on London’s AIM market with a 25% free float initially.

AIM is a sub market of the London Stock Exchange (LSE) which is targeted at smaller companies.

“We currently grow by bank debt but by going to the public markets we can access more funding for growth. So we will be a publically traded company where I maintain [at least] a 25% share.”

On the LSE it is possible to block a hostile takeover if you maintain a 25% share in a company.

“The target for the IPO is October 2017. We are talking to banks and advisors and preparing our housekeeping for the IPO,” added Kessler.

2M Holdings – with 2014/15 sales of £106m and earnings before tax, depreciation and amortization (EBITDA) of £7.34m – was established in 2003 as a holding company.

Since then Kessler has built the company by acquiring or establishing several UK-headquartered distributors and service providers including the Banner Chemicals Group, Surfachem, Packed Chlorine, Stowlin Croftshaw, MP Storage & Blending and SampleRite.

Kessler believes in maintaining the distinct identities of each group, rather than merging them under the 2M Holding brand.

Referring to Banner Chemicals Group, he said: “This company was established in 1860. Suppliers identify with the brand and its reputation – for them it is very important that any company handling the brand is treated with respect. Customers too identify with the brand and employees are proud of it.”

He said the company’s strategy is to grow 60% through acquisitions and 40% organically. The company may make an acquisition this year and is planning other strategic alliances.

Interview article by Will Beacham