Introduction Dear Clients and Friends, We hope this finds you and your families safe and well. We recognize that the past several months have been unprecedented times for you and your families, friends, colleagues, businesses, and investments. All of us are facing unique challenges and threats in this new environment. To help provide you with an update on the current chemicals market in this novel climate, Houlihan Lokey is pleased to present its Chemicals Summer 2020 Industry Update. In this issue, we have included relevant news stories, recent M&A transaction announcements, a public markets overview, and other industry insights to help you stay ahead in this evolving industry. We hope you find this quarterly update to be informative and that it serves as a valuable resource to you in staying abreast of the market. If there is additional content you would find useful for future updates, please don’t hesitate to call or email us with your suggestions. We look forward to staying in touch with you. Regards,

Chemicals Group Contacts Financial and Valuation Advisory

Mike Giffin Christopher Glad Zachary Mueller Managing Director Director Financial Analyst [email protected] [email protected] [email protected] 214.220.8485 312.456.4730 312.456.4763

Corporate Finance

Leland Harrs Martin Bastian Head of Chemicals Head of Chemicals, Europe [email protected] [email protected] 212.497.7842 +49 (0) 69 256 246 171

2 Houlihan Lokey is the trusted advisor to more top decision- makers than any other independent global investment bank.

Corporate Finance Financial Restructuring Financial and Valuation Advisory

2019 M&A Advisory Rankings 2019 Global Distressed Debt & Bankruptcy 2000 to 2019 Global M&A Fairness All U.S. Transactions Restructuring Rankings Advisory Rankings Advisor Deals Advisor Deals Advisor Deals

1 Houlihan Lokey 184 1 Houlihan Lokey 76 1 Houlihan Lokey 1,057 2 Goldman Sachs & Co 167 2 PJT Partners Inc 43 2 JP Morgan 929 3 JP Morgan 141 3 Moelis & Co 36 3 Duff & Phelps 734 4 Morgan Stanley 122 4 Lazard 29 4 Morgan Stanley 621 5 Evercore Partners 112 5 AlixPartners 19 5 Bank of America Merrill Lynch 612 Refinitiv (formerly known as Thomson Reuters). Announced Source: Refinitiv (formerly known as Thomson Reuters) Source: Refinitiv (formerly known as Thomson Reuters) or completed transactions.

No. 1 U.S. M&A Advisor No. 1 Global Restructuring Advisor No. 1 Global M&A Fairness Opinion Advisor Over the Past 20 Years Top 10 Global M&A Advisor 1,000+ Transactions Completed Valued at More Than $2.5 Trillion 1,000+ Annual Valuation Leading Capital Markets Advisor Collectively Engagements

Selected Transactions

a subsidiary of a portfolio company of

has acquired has completed the spin-off of has sold certain assets to has been acquired by

has been acquired by

a portfolio company of

Buyside Advisor Sellside Advisor Financial Opinion Fairness Opinion Sellside Advisor

a portfolio company of has acquired has completed a merger with the chemicals business of PPG in a Reverse Morris Trust transaction has been acquired by has been acquired by

has been acquired by from

Arsenal Capital Partners

Sellside Advisor Sellside Advisor Financial Opinion Buyside Advisor Financial Advisor

Tombstones included herein represent transactions closed from 2012 forward. 3 Houlihan Lokey Media Mentions

Below are excerpts from Leland Harrs, Head of Chemicals at Houlihan Lokey, from his May interview with ICIS Chemical Business (ICIS.com, May 8, 2020)

“[On Sellers] Avoiding Fire Sales

‘There has not been a flood of distressed chemical assets hitting the market, as this typically takes time,’ said Leland Harrs, Managing Director at Houlihan Lokey.

‘Companies are taking balance sheet actions, drawing down revolvers (credit lines), and cutting capex (capital spending). There’s no mad rush to sell noncore assets as the lead time is longer,’ said Harrs.

‘Most companies resist doing things out of distress on the M&A front. Distressed sales are not so much a feature in chemicals yet. But if depressed conditions continue, it can be another element in capital raising,’ he added.”

To read the full article, please click here.

4 Recent Transaction: Mitsubishi Chemical—Gelest Buyside Advisory

Houlihan Lokey recently served as the exclusive buyside advisor to MCC in its pending acquisition of Gelest, underscoring Houlihan Lokey’s cross-border capabilities.

Client Profile Mitsubishi Chemical Corp. (MCC) is Japan’s largest chemical company, offering a wide variety of performance products and industrial chemicals for a broad range of end markets, including healthcare/medical, electronics, food, automotive/aircraft, energy, and packaging and labels, among others. MCC is headquartered in Tokyo, Japan, and has more than 40,000 employees in more than 30 countries around the world.

Target Profile Gelest is an innovative manufacturer and supplier of silicones, organosilanes, metal organics, and specialty monomers for advanced technology end markets, including medical devices, life sciences, microelectronics, and personal care. The company helps customers succeed by assisting them to develop and supply the chemistry to solve their most challenging materials science problems and enable their new product technology. Gelest was founded in 1991 and is headquartered in Morrisville, Pennsylvania. It is a portfolio company of New Mountain Capital, LLC (NMC).

Houlihan Lokey’s Role Houlihan Lokey served as the exclusive buyside advisor to MCC in its acquisition of Gelest from NMC. Houlihan Lokey provided extensive valuation and strategic analysis, due diligence and process management, and effective negotiation with the counterparties. In addition, Houlihan Lokey’s Japan coverage team provided seamless communications support for the cross-border elements of this transaction.

Transaction Snapshot Following comprehensive due diligence, MCC signed a definitive agreement to acquire Gelest on April 30, 2020. The closing of the transaction is expected in 2020, pending customary regulatory reviews and approvals. MCC plans to drive continued growth of Gelest by enhancing its ability to bring its technologies to market through its extensive operating resources and customer network. The company also plans to accelerate the development of new customer solutions to drive advances in digital social infrastructure, vision care, and other life sciences applications. This transaction highlights Houlihan Lokey’s deep knowledge and understanding of the global specialty chemicals industry and highlights the firm’s cross-border M&A capabilities and robust coverage of Japanese corporate clients.

5 Selected Recent M&A News

DSM to Add World-Leading Animal Nutrition and Health Specialty Businesses With Acquisition of Erber Group (DSM.com, June 12, 2020) “Royal DSM, a global science-based company in nutrition, health, and sustainable living, announces that it has reached agreement to acquire Erber Group for an enterprise value of €980 million. The value of the transaction represents an EV/EBITDA multiple of about 14x the 2020 EBITDA (fiscal year ending September 2020). The transaction—which excludes two smaller units in the Erber Group—is expected to be earnings enhancing in the first year upon completion. Erber Group’s specialty animal nutrition and health businesses, Biomin and Romer Labs, specialize primarily in mycotoxin risk management, gut health performance management, and food and feed safety diagnostic solutions, expanding DSM’s range of higher value-add specialty solutions. Romer Labs also complements DSM’s human nutrition and health offering to food industry customers. Sanphar and EFB, representing 7% of Erber Group’s total sales, are not included in this transaction. The acquired businesses have combined sales of €330 million and an adjusted EBITDA margin above 20% for the 12 months to the end of March 2020, with a high single-digit organic sales growth rate over the past five years. The acquisition will be debt financed, with committed bridge financing in place. DSM continues to benefit from a strong balance sheet and remains committed to maintaining a strong investment grade credit profile.”

Tronox to Acquire Norwegian Titanium Smelting Facility (Tronox.com, May 14, 2020) “Tronox Holdings plc (NYSE:TROX) (‘Tronox’ or the ‘company’), a leading integrated manufacturer of titanium dioxide pigment, today announced that it has signed a definitive agreement to acquire the TiZir Titanium and Iron (TTI) business from Eramet S.A., a publicly traded French multinational mining and metallurgy company, for approximately $300 million. TiZir’s TTI facility, located in Tyssedal, Norway, upgrades ilmenite to produce high-grade titanium slag and high-purity pig iron with an annual capacity of approximately 230,000 tons and 90,000 tons, respectively… The $300 million purchase price represents a synergy-adjusted multiple of approximately 5.2x FY 2019 adjusted EBITDA and will be funded with cash from the balance sheet. The transaction is expected to achieve $15 million–$20 million in run-rate synergies in year three. The transaction has received the unanimous approval of the Tronox and Eramet boards of directors and is subject to certain consents and customary closing conditions including regulatory approvals.”

6 Selected Recent M&A News (cont.)

Hillenbrand Completes Sale of Cimcool Business to Dubois Chemicals, Inc. (Hillenbrand.com, March 30, 2020) “Hillenbrand, Inc. (NYSE:HI) announced today that its wholly owned subsidiary Milacron LLC has completed the sale of its Cimcool business to DuBois Chemicals, Inc. All conditions were met, including the employee consultations required by Dutch law, allowing for the transaction to be completed in a single closing and resulting in cash proceeds to Hillenbrand of approximately $224 million… As previously announced, DuBois has also agreed to pay up to $26 million in contingent purchase price upon a future sale of the combined DuBois and Cimcool businesses, conditioned upon DuBois’ ultimate sponsor receiving elevated levels of return on equity, for an aggregate purchase price not to exceed $250 million should these conditions be met. Consistent with its current capital allocation priorities, Hillenbrand intends to use cash proceeds from the sale primarily for deleveraging activities.”

Huntsman Announces the Acquisition of CVC Thermoset Specialties, Expanding Its Specialty Chemicals Portfolio (Huntsman.com, March 16, 2020) “Huntsman Corporation (NYSE:HUN) today announces its agreement to acquire CVC Thermoset Specialties, a North American specialty chemical manufacturer serving the industrial composites, adhesives, and coatings markets. CVC Thermoset Specialties is part of Emerald Performance Materials LLC, which is majority owned by affiliates of American Securities LLC. CVC Thermoset Specialties has annual revenues of approximately $115 million with two manufacturing facilities located in Akron, Ohio, and Maple Shade, New Jersey. Under terms of the agreement, Huntsman will pay $300 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity. Based on full year 2019, the purchase price represents an adjusted EBITDA multiple of approximately 10 times, or between approximately seven to eight times pro forma for synergies, the lower multiple end being dependent upon normal growth market conditions. The transaction is expected to close around midyear of 2020.”

7 Chemical M&A Activity

While the chemicals M&A market has been very active on both the private equity and corporate side in the last years, the last 12 months in particular have seen several corporate carve-outs/divestitures and financial sponsors selling relatively “young” portfolio assets. Valuation levels have come down somewhat; however, they remained at elevated levels. In recent weeks, most of the M&A processes have been put on hold, and new launches have been postponed until there is more visibility on financial impact of the crisis as well as overall business performance and valuation levels.

Strategic Buyer Median Strategic Buyer 11.5x Financial Buyer Median Financial Buyer 9.5x

Date EV $ Buyer Target EV/EBITDA

Feb-16 775 Allnex Nuplex 8.7x Mar-16 11,300 Sherwin-Williams Valspar 16.2x Apr-16 684 Eurazeo Novacap (Ardian) 7.5x May-16 3,800 Evonik Perf. Materials (Air Products) 15.8x May-16 700 Reichold Inc Polynt (InvestIndustrial) 7.5x Jun-16 3,200 BASF Chemetall (Albemarle) 15.8x Jul-16 485 Arkema Den Braven (Egeria) 11.0x Sep-16 454 Black Diamond Vertellus Specialties 7.4x 2016 Sep-16 2,400 Lanxess Chemtura 9.8x Median: 7.5x Median:

Oct-16 3,200 Carlyle Atotech (Total) 11.9x 10.5x Median: Dec-16 1,000 Blackstone Acetow (Solvay) 7.0x Dec-16 630 Evonik Silica Business (J.M. Huber) 10.5x Dec-16 880 Imerys Kerneos (Astorg Partners) 8.8x Dec-16 5,500 Lonza Capsugel (KKR) 15.1x Dec-16 900 Chemtrade Canexus 9.3x Jan-17 980 Lone Star Funds Arclin 7.0x Mar-17 1,050 Henkel Darex Packaging (GCP Applied Technologies) 14.7x Mar-17 3,200 SUEZ and CDPQ GE Water (General Electric Company) 12.5x Mar-17 3,200 Bain Capital Diversey (Sealed Air) 9.1x Apr-17 1,415 Quaker Chemical Houghton International 11.8x Apr-17 420 Axalta Coating N. American Industrial Wood Coatings (Valspar) 7.6x Apr-17 660 Ashland Pharmachem Laboratories 10.5x Apr-17 495 KMG Chemicals Flowchem (Arsenal Capital Partners) 11.5x May-17 10,790 Clariant AG Huntsman 11.0x Jun-17 375 Firmenich Agilex Frangrances (MidOcean) 15.0x Jul-17 405 Eurazeo Iberchem 16.2x

2017 Aug-17 1,325 Genesis Energy Alkali Chemicals (Tronox) 8.0x

Sep-17 68,902 Dow Chemical DuPont 9.1x Median: 12.3x 11.7x Median: Sep-17 1,575 H.B. Fuller Royal Adhesives and Sealants (American Sec.) 11.4x Sep-17 1,600 BASF Polyamide Business (Solvay) 7.0x Sep-17 900 H.I.G. Capital Vantage Specialty Chemicals (The Jordan) 9.5x Sep-17 1,333 Kuraray Calgon Carbon Corp. 16.5x Oct-17 670 Carlisle Companies Accella Performance Materials (Arsenal Capital) 11.5x Oct-17 5,900 BASF Seed and non-selective herbicide (Bayer) 15.3x Dec-17 1,000 SK Capital ICL: Fire Safety and Oil Additives 7.5x Dec-17 416 W.R. Grace Polyolefin Catalysts (Albermarle) 12.8x Feb-18 2,250 LyondellBasell A. Schulman 11.0x Mar-18 1,812 Givaudan Naturex 29.3x Mar-18 750 Silica EP Minerals (Golden Gate) 12.5x Mar-18 10,100 Carlyle, GIC AkzoNobel: Specialty Chemicals Business 10.0x May-18 6,882 IFF Frutarom 20.3x Jun-18 2,000 EQT and PSP Investments Azelis (Apax Partners) 14.5x Jun-18 700 Bain Capital Italmatch (Ardian) 10.0x Jun-18 600 Elementis Mondo Minerals (Advent) 13.1x Jul-18 5,000 Taiyo Nippon Sanso European Industrial Gases (Praxair) 12.5x

Jul-18 3,300 CVC/Messer Group Linde 9.2x 11.1x Jul-18 4,200 UPL/ADIA and TPG Arysta LifeSciences 9.9x 15.7x 2018 Jul-18 425 Cambrex Halo Pharma Aug-18 1,600 Cabot Microelectronics KMG Chemicals 14.5x Median: 10.0x Median: Median: Sep-18 3,100 SJL, KCC, Wonik Momentive Performance Materials 8.7x Sep-18 2,000 US Univar Nexeo 10.2x Sep-18 1,700 Clearlake Capital Unifrax (American Securities) 12.6x Nov-18 630 Platinum Equity Lonza's Water Care Business 9.5x Nov-18 625 Evonik PeroxyChem (One Equity Partners) 10.4x Nov-18 655 HollyFrontier Sonneborn (One Equity Partners) 9.9x Nov-18 1,100 INEOS Ashland's Composites and BDO business 7.3x Nov-18 800 Keppel Infrastructure Ixom (Blackstone) 8.6x Dec-18 675 Ingevity Perstorp's Capa unit 11.3x Jan-19 2,550 Sika Parex (CVC Fund V) 13.1x Jan-19 900 Symrise IDF, ADF 17.6x Feb-19 150 Royal DSM Yantai Andre Pectin Co. Ltd. (46% stake) 13.0x Mar-19 3,000 Advent Evonik MMA 8.5x Mar-19 5,800 Merck Versum 13.7x Apr-19 3,292 Parker Hannifin Lord Corp. 18.4x May-19 570 Arkema ArrMaz 10.8x Jul-19 661 Synthomer Omnova Solutions 9.9x 12.2x

Jul-19 15,000 Chevron Phillips Chemical Nova Chemicals 8.7x 12.4x Aug-19 2,076 Indorama Chemical Intermediates (Huntsman) 8.0x Aug-19 2,400 Permira Cambrex 16.2x 2019 Aug-19 775 SK Capital Partners PolyOne (Performance Products and Solutions) 8.7x

9.6x Median: Aug-19 1,300 DIC Corp. BASF (pigment business) Median: Oct-19 832 One Rock Capital Partners Innophos 8.4x Oct-19 530 Daelim Industrial Kraton‘s Cariflex business 10.5x Dec-19 350 Huntsman Icynene-Lapolla 10.0x Dec-19 26,200 IFF DuPont (Nutrition and Biosciences) 17.8x Dec-19 1,447 PolyOne Clariant (Color and Additive Masterbatch Business) 11.1x Dec-19 3,500 Lone Star Funds BASF Construction Chemicals ~10.5x Dec-19 9,027 Showa Denko Hitachi Chemical 13.4x Dec-19 3,900 Apergy Corp. Nalco Champion 12.5x Mar-20 300 Huntsman CVC Thermoset Specialities 10.0x Mar-20 224 DuBois Chemicals (Altas) Hillenbrand‘s Cimcool Business ~9-10x Apr-20 918 EQT Schülke 13.3x 13.3x 10.0x 2020 May-20 300 Tronox Eramet’s TiZir Titanium and Iron 7.3x Jun-20 530 Chr. Hansen UAS Laboratories 17.6x Jun-20 1,112 Royal DSM ERBER 14.0x Sources: Company information, MergerMarket, Houlihan Lokey analysis. 8 Public Markets Overview

Median TEV/NTM EBITDA Multiples

15.0x

11.2x 11.5x 10.0x 10.0x 9.3x 9.4x 9.5x 8.6x

6.3x

5.0x

0.0x Basic/Diversified Specialty Large Cap Specialty Mid Cap Chemicals Distribution

Jun 2019 Jun 2020

Stock Price Index

Basic/Diversified Specialty Large Cap Specialty Mid Cap Chemicals Distribution S&P 500 S&P 500 Chemicals Index STOXX Europe 600 STOXX Europe 600 Chemicals

140.0%

130.0%

120.0%

110.0%

100.0%

90.0%

80.0%

70.0%

60.0%

50.0% Jun-19 Sep-19 Dec-19 Mar-20 Jun-20

NTM refers to next-12-month consensus estimates per S&P Capital IQ as of 6/30/2019 and 6/30/2020. 9 Sources: Bloomberg and S&P Capital IQ. Selected Chemical Inputs (weekly index prices)

Cushing Crude Oil (WTI) U.S. Gulf Ethylene (FD) ($ per barrel) ($ per pound) $70.0 $0.30

$0.28 $60.0 $0.25

$50.0 $0.23

$0.20 $40.0 $0.18

$30.0 $0.15

$0.13 $20.0 $0.10 $10.0 $0.08

$0.0 $0.05 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 U.S. Gulf Propylene (FD) U.S. Gulf Butadiene (CIF)

($ per pound) ($ per pound)

$0.30

$0.55

$0.25 $0.45

$0.20 $0.35

$0.15 $0.25

$0.10 $0.15

$0.05 $0.05 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20

Sources: Bloomberg and Polymer update. 10 Selected Chemical Inputs (weekly index prices, cont.)

U.S. Gulf Benzene (FOB) U.S. Mixed Xylene (FOB)

($ per gallon) ($ per gallon) $3.30 $3.50

$3.00 $2.80

$2.50 $2.30

$2.00

$1.80 $1.50

$1.30 $1.00

$0.50 $0.80 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20

Natural Gas (Henry Hub) U.S. Toluene

($ per million BTU) ($ per gallon) $3.00 $3.00 $2.80

$2.60 $2.50 $2.40

$2.20 $2.00 $2.00

$1.80 $1.50 $1.60

$1.40 $1.00

$1.20

$1.00 $0.50 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20

Sources: Bloomberg and Polymer update. 11 Selected Macroeconomic Data

U.S. Total Monthly Automotive Sales U.S. Privately Owned Housing Units Started (millions) (thousands)

20.0 1,700 18.0 1,600 16.0 1,500 14.0 1,400 12.0

10.0 1,300

8.0 1,200 6.0 1,100 4.0 1,000 2.0 900 0.0 May-19 Aug-19 Nov-19 Feb-20 May-20 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 U.S. QoQ Real GDP Growth U.S. Consumer Price Index

(% change from preceding period) 260 4.0%

3.0% 259

2.0% 258 1.0%

0.0% 257

-1.0% 256 -2.0%

-3.0% 255 -4.0%

-5.0% 254

-6.0% Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 253 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 May-19 Aug-19 Nov-19 Feb-20 May-20

Source: Federal Reserve Bank of St. Louis. 12 Selected Macroeconomic Data (cont.)

U.S. Average Weekly Chemical Railcar Loadings U.S. Chemicals Activity Barometer Index (thousands) 34 126 33

32 121 31

30 116 29

28 111 27

26 106 25 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20

Source: Association of American Railroads. Sources: American Chemistry Council, Bloomberg.

13 Selected Public Comparables

Basic/Diversified

(as of 6/30/2020, $ in millions, except per-share prices) NTM 6/30/2020 Enterprise Value/ Stock Stock Performance (% Change) Equity Enterprise EBITDA NTM NTM Company Name Ticker Price 1 Month 3 Month 1 Year Value Value Revenue EBITDA Margin Revenue EBITDA BASF SE DB:BAS $56.04 3.3% 25.1% -22.4% $51,557.2 $73,661.6 $64,011.8 $8,266.0 12.9% 1.15x 8.9x Bayer AG DB:BAYN $74.17 9.4% 30.2% 7.1% $72,736.5 $112,274.0 $50,315.0 $13,901.2 27.6% 2.23x 8.1x Celanese Corp. NYSE:CE $86.34 -4.0% 26.9% -21.3% $10,207.9 $14,387.9 $5,233.8 $1,362.5 26.0% 2.75x 10.6x Covestro AG DB:1COV $38.26 3.4% 30.7% -24.9% $6,966.0 $8,438.0 $11,873.5 $1,055.9 8.9% 0.71x 8.0x Dow Inc. NYSE:DOW $40.76 5.6% 50.7% -18.7% $30,192.2 $47,124.2 $35,883.9 $4,814.5 13.4% 1.31x 9.8x Huntsman Corp. NYSE:HUN $17.97 -1.0% 34.7% -14.3% $3,963.0 $5,102.0 $5,925.4 $459.6 7.8% 0.86x 11.1x LANXESS AG XTRA:lxs $52.85 2.3% 38.7% -11.9% $4,563.2 $6,427.9 $7,099.9 $987.7 13.9% 0.91x 6.5x LyondellBasell Industries NV NYSE:LYB $65.72 3.1% 45.9% -24.7% $21,931.2 $35,857.2 $25,442.1 $3,665.8 14.4% 1.41x 9.8x Methanex Corp. TSX:MX $18.01 11.5% 56.7% -60.2% $1,372.4 $3,911.9 $2,113.4 $240.5 11.4% 1.85x 16.3x Olin Corp. NYSE:OLN $11.49 -4.5% 5.6% -47.1% $1,813.7 $5,482.3 $5,667.6 $659.7 11.6% 0.97x 8.3x The Chemours Company NYSE:CC $15.35 17.1% 103.6% -31.9% $2,520.8 $6,145.8 $5,005.2 $816.2 16.3% 1.23x 7.5x Westlake Chemical Corp. NYSE:WLK $53.65 12.5% 50.5% -23.3% $6,849.6 $10,727.6 $6,892.6 $1,054.4 15.3% 1.56x 10.2x

Median 3.3% 36.7% -22.9% $6,996.3 $1,055.2 13.7% 1.3x 9.3x

Mean 4.9% 41.6% -24.5% $18,788.7 $3,107.0 15.0% 1.4x 9.6x

Specialty Large Cap (Greater Than $5 Billion EV)

(as of 6/30/2020, $ in millions, except per-share prices) NTM 6/30/2020 Enterprise Value/ Stock Stock Performance (% Change) Equity Enterprise EBITDA NTM NTM Company Name Ticker Price 1 Month 3 Month 1 Year Value Value Revenue EBITDA Margin Revenue EBITDA Albemarle Corp. NYSE:ALB $77.21 0.9% 40.8% 9.8% $8,208.9 $11,103.1 $3,045.4 $733.7 24.1% 3.65x 15.1x Arkema S.A. ENXTPA:AKE $95.81 10.0% 40.3% 2.6% $7,321.1 $9,047.4 $9,082.3 $1,371.6 15.1% 1.00x 6.6x Ashland Global Holdings Inc. NYSE:ASH $69.10 2.9% 46.1% -13.5% $4,177.5 $5,984.5 $2,285.9 $498.1 21.8% 2.62x 12.0x Clariant AG SWX:CLN $19.65 7.2% 21.9% -2.9% $6,471.9 $8,074.7 $4,161.9 $681.9 16.4% 1.94x 11.8x Corteva, Inc. NYSE:CTVA $26.79 -1.9% 19.0% -9.7% $20,048.8 $20,939.8 $14,200.3 $2,120.9 14.9% 1.47x 9.9x DuPont de Nemours, Inc. NYSE:DD $53.13 4.7% 63.4% -29.9% $38,986.6 $55,934.6 $19,770.9 $4,566.6 23.1% 2.83x 12.2x Eastman Chemical Co. NYSE:EMN $69.64 2.3% 53.0% -12.5% $9,460.1 $15,319.1 $8,100.5 $1,684.7 20.8% 1.89x 9.1x Ecolab Inc. NYSE:ECL $198.95 -6.4% 35.6% 1.6% $56,606.7 $63,325.0 $11,772.0 $2,666.8 22.7% 5.38x 23.7x Evonik Industries AG DB:EVK $25.58 3.1% 26.3% -12.2% $11,835.7 $14,963.1 $14,187.4 $2,216.6 15.6% 1.05x 6.8x FMC Corp. NYSE:FMC $99.62 1.2% 29.4% 17.2% $12,895.5 $16,458.0 $4,804.9 $1,299.3 27.0% 3.43x 12.7x Johnson Matthey PLC LSE:JMAT $25.98 -0.4% 20.7% -38.8% $5,001.1 $6,397.8 $4,726.0 $745.6 15.8% 1.35x 8.6x Koninklijke DSM NV ENXTAM:DSM $138.65 8.4% 24.9% 11.8% $23,538.1 $25,149.7 $10,239.7 $1,928.4 18.8% 2.46x 13.0x Solvay S.A. ENXTBR:SOLB $80.19 5.3% 11.3% -22.9% $8,292.9 $11,663.3 $10,473.0 $2,122.7 20.3% 1.11x 5.5x W.R. Grace & Co. NYSE:GRA $50.81 -2.7% 50.5% -34.8% $3,362.2 $5,192.4 $1,758.7 $463.4 26.3% 2.95x 11.2x Wacker Chemie AG XTRA:WCH $68.69 10.0% 40.2% -13.0% $3,412.5 $4,283.6 $5,187.4 $634.3 12.2% 0.83x 6.8x

Median 2.9% 35.6% -12.2% $8,100.5 $1,371.6 20.3% 1.9x 11.2x

Mean 3.0% 34.9% -9.8% $8,253.1 $1,582.3 19.7% 2.3x 11.0x

NTM refers to next-12-month consensus estimates per S&P Capital IQ as of 6/30/2020. Source: S&P Capital IQ. 14 Selected Public Comparables (cont.)

Specialty Mid Cap (Less Than $5 billion EV)

(as of 6/30/2020, $ in millions, except per-share prices) NTM 6/30/2020 Enterprise Value/ Stock Stock Performance (% Change) Equity Enterprise EBITDA NTM LTM Company Name Ticker Price 1 Month 3 Month 1 Year Value Value Revenue EBITDA Margin Revenue EBITDA Balchem Corp. NASDAQGS:BCPC $94.86 -5.8% 1.9% -4.7% $3,065.6 $3,251.8 $690.3 $160.1 23.2% 4.71x 20.3x Elementis plc LSE:ELM $0.80 -2.9% 34.1% -55.4% $462.5 $926.2 $754.9 $140.2 18.6% 1.23x 6.6x Ferro Corp. NYSE:FOE $11.94 -0.7% 45.8% -23.6% $982.0 $1,799.0 $951.2 $144.6 15.2% 1.89x 12.4x Fuchs Petrolub SE DB:FPE3 $40.04 1.3% 12.9% -1.0% $5,141.7 $5,040.4 $2,631.6 $391.7 14.9% 1.92x 12.9x GCP Applied Technologies Inc. NYSE:GCP $18.58 -7.7% 17.9% -18.6% $1,354.9 $1,421.6 $840.9 $103.1 12.3% 1.69x 13.8x H.B. Fuller Co. NYSE:FUL $44.60 18.6% 72.1% -4.2% $2,299.9 $4,228.2 $2,790.3 $425.2 15.2% 1.52x 9.9x Ingevity Corp. NYSE:NGVT $52.57 -0.2% 49.7% -51.1% $2,166.4 $3,415.6 $1,138.3 $326.3 28.7% 3.00x 10.5x Innospec Inc. NASDAQGS:IOSP $77.25 0.2% 20.2% -16.6% $1,897.3 $1,921.4 $1,285.1 $124.1 9.7% 1.50x 15.5x Koppers Holdings Inc. NYSE:KOP $18.84 13.7% 87.1% -37.3% $395.3 $1,412.3 $1,611.1 $180.2 11.2% 0.88x 7.8x NewMarket Corp. NYSE:NEU $400.48 -8.2% 4.0% 0.3% $4,380.7 $4,999.2 NA NA NA NA NA PQ Group Holdings Inc. NYSE:PQG $13.24 5.5% 24.0% -18.8% $1,808.5 $3,725.6 $1,461.0 $430.5 29.5% 2.55x 8.7x Quaker Chemical Corp. NYSE:KWR $185.65 8.7% 65.7% -9.0% $3,297.3 $4,141.4 $1,406.0 $209.7 14.9% 2.95x 19.8x Stepan Co. NYSE:SCL $97.10 -0.1% 16.2% 5.0% $2,182.1 $2,186.8 $1,810.2 $234.8 13.0% 1.21x 9.3x

Median -0.1% 24.0% -16.6% $1,345.5 $194.9 15.1% 1.8x 11.5x

Mean 1.7% 34.7% -18.1% $1,447.6 $239.2 17.2% 2.1x 12.3x

Chemicals Distribution

(as of 6/30/2020, $ in millions, except per-share prices) NTM 6/30/2020 Enterprise Value/ Stock Stock Performance (% Change) Equity Enterprise EBITDA NTM NTM Company Name Ticker Price 1 Month 3 Month 1 Year Value Value Revenue EBITDA Margin Revenue EBITDA Brenntag AG XTRA:BNR $52.63 -0.1% -0.1% -0.1% $8,131.9 $10,413.1 $12,944.3 $1,064.7 8.2% 0.80x 9.8x Hawkins, Inc. NASDAQGS:HWKN $42.58 -0.7% -0.7% -0.7% $453.8 $518.5 $575.7 $67.1 11.6% 0.90x 7.7x IMCD NV ENXTAM:IMCD $94.17 -0.1% -0.1% -0.1% $4,941.8 $5,769.2 $3,072.2 $281.8 9.2% 1.88x 20.5x Univar Solutions Inc. NYSE:UNVR $16.86 9.1% 68.4% -24.1% $2,847.7 $5,573.1 $8,182.6 $605.6 7.4% 0.68x 9.2x

Median -0.1% -0.1% -0.4% $5,627.4 $443.7 8.7% 0.9x 9.5x

Mean 2.0% 16.9% -6.3% $6,193.7 $504.8 9.1% 1.1x 11.8x

NA refers to not available. NTM refers to next-12-month consensus estimates per S&P Capital IQ as of 6/30/2020. Source: S&P Capital IQ. 15 About Houlihan Lokey

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