(Reuters) -KKR & Co said on Friday it would buy chemical maker Chase in an all-cash deal valued at about $1.3 billion including debt, to help the private equity firm bolster its holdings in the specialty chemicals sector.
Shares of Chase fell 1.5% in premarket trading.
Under the deal terms, KKR will buy all outstanding shares of Chase common stock for $127.50 apiece - 0.3% lower than the stock's last close but 3.6% higher than June 9, when the Wall Street Journal first reported that Chase was exploring a sale.
Chase manufactures chemicals such as adhesives and coating materials to be used in industries ranging from automotive and electronics to energy markets.
KKR has been on a deal-making spree to expand its portfolio of assets and businesses in tech, healthcare, real estate, energy and credit. Last month, it agreed to buy up to 40 billion euros of PayPal (NASDAQ:PYPL)'s buy-now-pay-later loans in Europe.
Valve and pump maker Circor is also poised to sell itself to KKR in a $1.7 billion deal.
"We look forward to supporting Chase on its next phase of growth through developing exciting new products, executing upon strategic acquisitions, and serving customers in growing end-markets," said Josh Weisenbeck of KKR's Industrials investment team.
The deal is expected to close in the fourth quarter of 2023.