ContextLogic agrees to buy gChem for USD 850 million
ContextLogic agreed to buy specialty chemicals maker gChem from EagleTree Capital-managed funds and co-investors in a deal valuing gChem at USD 850 million.
gChem, founded 64 years ago, produces dimethyl sulfoxide used in pharmaceuticals, semiconductors, agricultural chemicals, performance chemicals, aerospace.
Financing includes up to USD 870 million of committed equity, partly offset by debt, supported by a fully backstopped rights offering at USD 9 per unit.
Blackstone Credit & Insurance is leading committed debt financing of a USD 250 million term loan, a USD 25 million revolving credit facility.
Closing is targeted by end-2026; the combined business is forecast to generate USD 95 million to USD 105 million of free cash flow in 2027.
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