Q4 2025

Specialty Chemicals & Performance Materials Sector M&A Update

In Q4, the S&P 500 Specialty Chemicals Sub Industry Index increased by 3.0% and outperformed a 2.0% increase in the S&P over the same period.
The median EV/EBITDA multiple for reported private equity deals in the Specialty Chemicals & Performance Materials sector decreased to 12.3x in 2025 from 13.8x in 2024, and increased for strategic deals to 10.3x from 8.2x in 2024.
M&A deal volume in the sector decreased 5.7% in Q4 to 248 deals from 263 in Q3, but increased 11.2% from 223 in Q4 of the prior year.
North America was the most active region in Q4 with 95 deals. Most notably in North America was I Squared Capital’s $2.3 billion buyout of Entek International, a manufacturer of porous silica-filled polymer battery separators, in October 2025.
Total capital invested in M&A transactions decreased 26.9% in Q4 to $27.7B from $37.9B in Q3, driven largely by a shift in mix to smaller sized deals.