The Chem Ledger #8: Comstock’s AI Move, Solenis’ Expansion, Myant’s Textile Tech Push, and Major Investments in the Chemical Sector

M&A

1/  Comstock Inc. has acquired GenMat Licensing LLC as part of a strategic move to enhance its capabilities in artificial intelligence (AI) and materials science. The acquisition was completed on November 13, 2024, where Comstock exchanged its equity in Quantum Generative Materials LLC for 100% ownership of GenMat Licensing LLC, also referred to as AlCo. Prior to the acquisition, Comstock had invested approximately $15 million in GenMat, which represented about 32% of the company based on a post-money valuation round of around $46 million.

2/ Solenis has completed the acquisition of BASF's flocculants business. This acquisition was finalized on November 1, 2024, and is part of Solenis's strategy to enhance its offerings in the specialty chemicals sector, particularly for water-intensive industries such as mining, pulp and paper, and chemical processing. This acquisition follows a previous collaboration between Solenis and BASF, where they merged their paper and water chemicals businesses.

3/ Myant Corp., a Canadian company specializing in advanced materials for healthcare, announced its acquistion of Nanoleq and Osmotex, both of which are textile computing companies based in Switzerland. Nanoleq develops materials  that can integrate technology into fabrics, enhancing their functionality for health monitoring and other applications. Osmotex specializes in advanced textile technologies, particularly in moisture management and comfort, critical for wearable health devices. These acquisitions strengthen Myant's leadership in textile computing and advanced materials, positioning it for further growth in the health tech market. 

4/ International Chemical Investors Group (ICIG) has acquired the European Advanced Organics business from Valtris Specialty Chemicals. This acquisition was officially announced on November 4, 2024, and it involves two organic chemical facilities located in Tessenderlo, Belgium, and Maastricht, the Netherlands. Valtris, previously owned by H.I.G Capital, has been involved in various specialty chemical sectors, and this sale is a broader strategy to optimize its portfolio. 

Investments

1/ Sunthetics, an AI technology company focused on the chemical and pharmaceutical industries , has successfully secured $4 million in a Seed funding round. This funding was led by L'ATTITUDE Ventures and included participation from S3 Ventures, Hearst Level Up Ventures, and the Global Impact Fund II. The capital raised will be used to expand the Sunthetics team and enhance their machine learning platform, which aims to accelerate the development of new chemical products and processes. The company's approach is designed to significantly reduce development time and resource consumption in the chemical industry.

2/ IMCD NV has raised €300 million through an accelerated bookbuild offering of new shares. This capital rise was announced on November 12, 2024, and completed shortly thereafter. The funds are intended to enhance the company's financial flexibility. IMCD NV is recognized for its strong market presence and expertise in the chemical distribution sector, making it a key player in the global market.

3/ revalyu Resources has successfully commissioned its second PET recycling plant at its facility in Nashik, India. This new plant significantly enhances the company's recycling capacity, allowing it to process over 20 million used PET bottles daily, converting them into 160 tonnes of recycled PET per day. The glycolysis-based recycling technology utilized at this site significantly reduces water and energy consumption by 75% and 91%, respectively, compared to traditional PET manufacturing methods. A third plant is currently being constructed in Nashik, India, which is part of a broader investment plan of $100 million. This new facility is expected to add 120 tonnes per day of recycling capacity and is scheduled to be operational by the third quarter of 2025. 

4/ Quadra Group and Octium Solutions Inc. have announced a significant investment aimed at expanding railway infrastructure in Malartic, Quebec. This project is designed to improve the transportation of bulk chemical commodities - both liquid and dry - primarily for mining customers in the region and parts of Ontario. Quadra is a prominent North American company based in Vaudreuil-Dorion, Quebec, specializing in the distribution of chemicals and ingredients across Canada and the USA. Octium, also based in Vaudreuil-Dorion, Quebec, specializes in logistics and warehousing services. 

Stake Adjustments

1/ Janney Montgomery Scott LLC has made adjustments to its holdings in Eastman Chemical Company. In Q3 of 2024, the firm sold 2,819 shares, reducing its stake by approximately 11.8%. Following this sale, Janney Montgomery Scott owned 21,077 shares of Eastman, valued at $2,360,000. 

2/ Amalgamated Bank reduced its holdings in Quaker Chemical Co. by 3.9% during the third quarter of 2024. Quaker Chemical recently reported a 6% decrease in net sales year-over-year for the third quarter, totaling  $462 million. Despite this decline, the company maintained gross margins at 37.3%. 

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