Diversey stock rallies on private equity-backed buyout by Solenis

Diversey Holdings Ltd.
DSEY,
-3.09%
stock is rallying by 37% in premarket action on Wednesday after the Bain Capital-backed chemical company agreed to a $4.6 billion go-private buyout offer from Solenis, a Platinum Equity portfolio company. Diversey agreed to be acquired for $8.40 a share, a 41% premium over its closing price on Tuesday. Bain Capital will receive $7.84 per share in cash and will retain a stake in the combined company. Solenis is a manufacturer of specialty chemicals for water-intensive industries that was acquired by Platinum Equity in 2021. Fort Mill, S.C.-based Diversey makes hygiene, infection prevention and cleaning solutions. Solenis CEO John Panichella will lead the combined company. The deal is expected to close in the second half of this year. Bain Capital invested in Diversey in 2017 and took the company public in 2021.