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IMCD: The Hidden Dutch Champion of Specialty Chemicals Distribution
How a Carve-Out from an Obscure Dutch Conglomerate Became One of Europe's Most Successful Roll-Up Stories
The Wilhelmina Tower rises along Rotterdam's waterfront, its glass facade reflecting the grey skies of a city that has traded with the world for four centuries. Inside, on the penthouse floor, the headquarters of IMCD N.V. occupies a modest space—nothing like the gleaming temples of finance that would befit a company that has delivered 7x returns to shareholders since its 2014 IPO. As of mid-2025, IMCD trades with a market capitalization of $7.9 billion. Yet the company does something that sounds almost anticlimactic: it distributes specialty chemicals.
But here's the paradox that makes IMCD one of the most fascinating business stories in European markets. Listed on Euronext Amsterdam, IMCD realized revenues of EUR 4,443 million in 2023 with over 4,700 employees in over 60 countries on six continents. This is a company that went public at a market capitalization of €1.05 billion and, through methodical execution of an elegant strategy, has compounded value at a rate that would make most technology companies jealous.
The story begins with a simple question that founder Piet van der Slikke must have asked himself sometime in the early 1990s: What happens when you take an industry dominated by small, fragmented, family-owned businesses and consolidate it under professional management with a clear value proposition? The answer, it turned out, was billions of euros in shareholder value.
IMCD's story can be traced back to a small group of companies that came together in 1995 with a vision for the industry. Today, guided by the entrepreneurial spirit of our founders, the company operates in more than 60 countries across six continents and employs over 5,126 professionals. What began as a division within a Dutch conglomerate became, through vision, persistence, and disciplined capital allocation, a global platform serving approximately 60,000 customers.
This is the story of how IMCD did it—and what investors can learn from a company that turned "boring" distribution into extraordinary returns.
The Dutch Trading Heritage & Internatio-MĂĽller Origins
To understand IMCD, you must first understand Rotterdam. This is a city whose DNA is encoded with commerce. Located at the mouth of the Rhine-Meuse-Scheldt delta, Rotterdam has served as Europe's gateway to the world since the Dutch Golden Age. The merchant trading houses that emerged here in the 17th century pioneered techniques of global commerce that remain foundational today—standardization, trust networks, and arbitrage between information asymmetries.
Internatio-MĂĽller was a conglomerate of businesses active in industrial services. The company was headquartered in Rotterdam. It existed from 1970 to 2001 and was continued as Imtech and IMCD. The conglomerate was the product of a grand merger typical of post-war European industrial consolidation.
Internatio-MĂĽller arose in 1970 from a merger of two trading houses: Internatio, active in trade and shipping, was founded in 1863 and went public in 1881. The trade and shipping house Wm H. MĂĽller & Co was founded in 1878. Both companies had grown from their mercantile roots into sprawling conglomerates touching numerous industries.
Both companies had grown into conglomerates that covered various aspects of trade and industrial services. Around 1990, Internatio-Müller was a conglomerate of more than 100 companies. The structure was typical of the era—diversified, unwieldy, and increasingly difficult to manage as global competition intensified.
In 1998, Internatio-MĂĽller bought the chemical distribution activities of British Petroleum in England, Germany, Italy and Australia. Like Internatio-MĂĽller, these companies traded in chemicals. Customers were producers of pharmaceutical products, food, cosmetics, paper and paint. Including the new companies, Internatio-MĂĽller expected to achieve annual sales of approximately 1.4 billion guilders. The activities were consolidated into Internatio-MĂĽller Chemical Distribution (IMCD).
What distinguished chemical distribution from the conglomerate's other activities was its potential for scale. Unlike shipping or industrial services, where local knowledge and relationships created barriers to consolidation, chemical distribution could be professionalized. There were technical services to standardize, supplier relationships to leverage across geographies, and regulatory expertise to aggregate.
IMCD Group was founded in 1995 as part of the large conglomerate Internatio-MĂĽller, which existed from 1970 to 2001 and later became IMCD and Imtech. IMCD stands for Internatio-MĂĽller Chemical Distribution.
The strategic insight was not immediately obvious. Chemical distribution might sound straightforward, but specialty chemicals operate in an entirely different world from commodity products—one where technical expertise, formulation support, and regulatory navigation matter more than logistics efficiency. This distinction would become the foundation of everything IMCD built.
Founding & Early Vision (1995-2001)
The origin story of IMCD is inseparable from one man: Piet Cornelis Johannes van der Slikke. His background was unusual for someone who would build a global distribution empire. He holds a law degree from the University of Groningen, the Netherlands. He started his career as an attorney at law at the law firm De Brauw Blackstone Westbroek in 1981 and practiced law in The Hague, Amsterdam and New York.
Van der Slikke was born on September 1, 1956, in Groningen—a university city in the northern Netherlands known more for academia than commerce. His path to IMCD was indirect, shaped by the kind of serendipitous career moves that only become legible in retrospect.
In 1988, Mr. Van der Slikke became General Counsel of Rotterdam-based Dutch conglomerate Internatio-MĂĽller and in 1993 he was appointed as Group Director. As of 1995, when Internatio-MĂĽller aggregated a number of chemical distribution businesses into a single division, Mr. Van der Slikke, joined by Mr. Kooijmans in 1996 started to build up the chemical distribution activities inside Internatio-MĂĽller, designed its strategy and executed its business plan, creating the Group as it stands today.
The transition from corporate lawyer to division director to entrepreneur happened over just seven years. Van der Slikke arrived at Internatio-Müller in 1988, became general counsel, was promoted to Group Director in 1993, and by 1995 was running what would become IMCD. It was an unlikely trajectory—but legal training would prove unexpectedly valuable for a business built on complex supplier contracts, regulatory navigation, and M&A execution.
In its early years, IMCD focused on building a strong presence in the European market, capitalizing on the growing demand for specialty chemicals across various industries, including pharmaceuticals, food and beverage, personal care, and coatings. The strategic focus was clear from the beginning: stay away from commodities, where price is king, and concentrate on specialty products where technical expertise creates value.
The early team understood something crucial about the chemical distribution industry: it was ripe for consolidation. Hundreds of small, often family-owned distributors served fragmented local markets. Suppliers—the large chemical manufacturers—increasingly wanted fewer, more capable distribution partners who could provide national and eventually pan-regional coverage. There was a mismatch between supply-side fragmentation and demand for consolidation.
By 2000, IMCD had achieved significant milestones, including the establishment of key partnerships with major manufacturers, which laid the foundation for its extensive product portfolio. The company's commitment to technical expertise and customer service became a hallmark of its business strategy.
The partnership between Van der Slikke and CFO Hans Kooijmans, who joined in 1996, would prove remarkably durable. For nearly three decades, this duo would lead IMCD through transformational change while maintaining strategic consistency—a rarity in an era of frequent executive turnover.
The Private Equity Years: Becoming Independent & Learning to Acquire (2001-2014)
If the 1995-2001 period was about building the foundation within Internatio-Müller, what followed was an education in institutional capital and professional acquisition-making. IMCD would pass through three private equity sponsors—each teaching the management team different skills while preserving the core strategic vision.
The MBO and AlpInvest Era (2001-2005)
The company received investments from investment firms AlpInvest in 2001. The management buyout from Internatio-MĂĽller was a decisive moment. Van der Slikke and his team were betting their careers on an independent future, backed by institutional capital that would demand returns but also provide resources for growth.
In 2001, Internatio-Müller disappeared from the stock exchange and Imtech took its place. In August 2015, Imtech went bankrupt. The irony is stark: while Imtech would eventually collapse spectacularly amid accounting scandals, IMCD—the smaller carve-out—would thrive. The divergent fates underscore how much depends on management quality and strategic focus.
The AlpInvest years were foundational. IMCD learned to operate under private equity ownership—managing leverage, hitting targets, and developing the acquisition capabilities that would later differentiate it. The company began making small acquisitions across Europe, developing the playbook it would later execute at scale.
AAC Capital Era (2005-2010)
Bain Capital has agreed to buy specialty chemical distributor IMCD from AAC, which purchased the company from AlpInvest in 2005 for an undisclosed sum. The handoff to ABN AMRO Capital (AAC) Partners marked continuation rather than disruption. Critically, Van der Slikke and his management team remained in place.
During this period, IMCD expanded its European footprint and refined what would become its distinctive competitive advantage: the "technical sales" model. Unlike commodity distributors who compete primarily on logistics and price, IMCD invested in application engineers and formulation scientists who could help customers solve problems. This wasn't just distribution—it was distribution plus consulting, a higher-value proposition that commanded higher margins.
Bain Capital Era (2010-2014)
Buyout shop Bain Capital agreed to buy Rotterdam-based chemical distributor IMCD. The deal valued the Dutch company at €650 million. The Bain Capital acquisition in late 2010 (closing in early 2011) represented a step-change in ambition.
In 2011, IMCD received significant backing when Bain Capital acquired a majority stake, providing capital for further international expansion. This partnership proved pivotal in IMCD's development, enabling the company to strengthen its global footprint and enhance its technical capabilities.
IMCD stated: "Our current main shareholder Bain Capital has supported us in our clear strategy for profitable growth, which we achieve through market growth, through expanding market share and through acquisitions. In the past three years we realized over 15 acquisitions and see many more exciting opportunities ahead."
The Bain years were transformational. The private equity firm brought professionalization, international network, and most importantly, the capital and expertise to accelerate acquisitions. The 15+ acquisitions completed during this period taught IMCD how to integrate businesses at pace without destroying value.
Perhaps the most remarkable aspect of the private equity era was continuity. Three different sponsors over 13 years, yet the same management team throughout. This is extraordinarily rare. Private equity firms typically want their own executives. But IMCD's owners recognized that Van der Slikke's knowledge of the industry, supplier relationships, and cultural sensibility were irreplaceable. Each transition was designed to allow continuity rather than disruption.
IMCD has been owned by management and private equity led funds since 2001, with Bain Capital as its current major shareholder. Headquartered in Rotterdam, The Netherlands, IMCD generated revenues of €1,233M in 2013 and employs in excess of 1400 professionals in over 30 countries. In 2013, gross margin amounted to 21.2% and IMCD achieved an operating EBITA of €97 million.
The IPO & Going Public (2014)
By 2014, IMCD had grown substantially under Bain Capital's ownership. The company was generating over €1.2 billion in revenue with more than 1,400 employees across 30 countries. The question was: what comes next?
On June 27, 2014, Euronext welcomed IMCD Group, a leading specialty chemicals distributor (ticker symbol: IMCD), on its Amsterdam market.
The Initial Public Offering (IPO) of IMCD on Euronext Amsterdam was priced at €21.00 per ordinary share, resulting in a market capitalization of €1,050 million.
The IPO was well-received. After opening, the first market price was €22 per share. The total market capitalization of the company at opening was €1.1 billion. The modest premium to IPO price suggested investor appetite for the story, even if few outside the specialty chemicals world had heard of IMCD.
In total the IPO consists of 22,000,000 Offer Shares leading to a total offering size of €462 million on the basis of the IPO price (excluding the over-allotment option). In addition, the Offering includes an over-allotment option of up to an additional 15% of the total number of Shares offered in the IPO. The over-allotment option consists of Shares offered by Bain Capital only. If the over-allotment option is exercised in full, the Shares purchased in the IPO will represent 50.6% of the total issued share capital of IMCD following the closing of the Offering.
The Offering of New Offer Shares was intended to allow the Company to strengthen its financial position by enabling it to repay current outstanding debt and provide the Company with increased financial flexibility. Furthermore, the Group expects that a listing will enable it to continue to pursue attractive acquisitions consistent with its growth strategy, provide access to the capital markets and provide a quoted, liquid acquisition currency.
Piet van der Slikke commented at the time: "We were pleased to see this much interest from investors making the IPO successful. We have a strong growth story, which resonates well in the market. Having worked hard to build the company over the past 13 years, we are now ready for our life on the stock exchange. Being listed gives us access to the capital markets and Euronext provides a solid platform for international companies like IMCD."
Cees Vermaas, CEO of Euronext Amsterdam, said: "We welcome IMCD to our market. This fast growing company is a great example of Dutch entrepreneurship. IMCD is a perfect complement to the community of international focused companies here in Amsterdam. We congratulate IMCD on its IPO and are proud to partner with the company as it embarks on its journey as a publicly-traded company."
CEO Piet van der Slikke and CFO Hans Kooijmans sounded the gong to celebrate the IPO of IMCD Group. With a passion for excellence, extensive industry knowledge and a commitment to creating value through expertise, IMCD is a market-leader in the sales, marketing and distribution of speciality chemicals and food ingredients. IMCD has built a dedicated team of more than 1,400 technical and commercial experts that work in close partnership to tailor best in class solutions for customers and producers in more than 30 countries.
The IPO achieved its strategic objectives. IMCD gained access to public markets capital—critical for a serial acquirer that needed both financial capacity and, importantly, quoted shares that could serve as M&A currency. Bain Capital exited gracefully, eventually selling its remaining 7.9% stake in IMCD. Bain placed 4.2 million shares, priced at €31.25 per share, with institutional investors. The transaction was led by Goldman Sachs International and Deutsche Bank.
The Globalization Sprint: Conquering North America (2014-2020)
The IPO was never about cashing out—it was about accelerating. And the primary strategic imperative was clear: crack North America.
IMCD's competitive position has strengthened considerably through its acquisition strategy, particularly in North America where it has transformed from a non-player in 2014 to a significant competitor through multiple strategic acquisitions.
Following its public listing, IMCD embarked on an aggressive acquisition strategy, particularly in North America and Asia-Pacific regions. Notable acquisitions included M.F. Cachat Company (2015), Mutchler Inc. (2016), L.V. Lomas (2017), and E.T. Horn Company (2018), which significantly strengthened IMCD's presence in the North American market. In Asia, the company expanded through acquisitions in India, China, South Korea, and Australia. By 2020, IMCD had transformed from a primarily European distributor to a truly global player with operations spanning six continents.
The L.V. Lomas Acquisition (2017)
IMCD announced that effectively 31 August 2017, it had successfully completed the acquisition of 100% of the Canadian and US specialty and ingredients distributor L.V. Lomas.
Established in 1960 and with activities at six locations in Canada and the US, including offices in Toronto (Head Office), Montreal and Vancouver, L.V. Lomas is one of North America's leading distributors of specialty chemicals, ingredients and raw materials and is distinguished by its experienced and qualified professionals that provide its customers with advanced technical support and market intelligence.
In 2016, the acquired business of L.V. Lomas generated revenue of C$383m (US$305m) and realized a normalized EBITDA of C$18 million (US$14.3m) with approximately 280 employees.
With its asset light business model and long term relationships with leading global chemical and ingredient suppliers, L.V. Lomas has an excellent fit with IMCD's business model and strategy and immediately provides IMCD with a significant presence in Canada and a further enhanced position in the US.
The E.T. Horn Acquisition (2018) — Completing National Coverage
IMCD announced that it signed an agreement to acquire 100% of the outstanding shares of E.T. Horn Company ("HORN"). HORN is an excellent fit with IMCD's US activities and supports the strategy of offering to its suppliers and customers an organisation with national US coverage and dedicated segment expertise.
HORN was established in 1961 and is a leading specialty chemicals distributor in the US with a focus on coatings, construction, plastics, personal care, human food & nutrition, animal nutrition, nutraceuticals and other specialties. With a head office in La Mirada, California HORN represents leading suppliers and is primarily focused on the West and South West regions of the US.
In 2017, HORN generated revenue of USD 276 million, a normalised EBITDA of USD 12 million and has approximately 200 employees.
The strategic logic was impeccable. IMCD already had presence in the US Northeast and Midwest through earlier acquisitions. L.V. Lomas gave them Canada and additional US coverage. E.T. Horn filled in the West and Southwest. Together, these acquisitions created true national coverage—exactly what large suppliers wanted from distribution partners.
"Horn is a leading specialty distributor in the U.S. with an excellent reputation," said Marcus Jordan, president of IMCD Americas. "There is a very good fit between Horn and our current U.S. organization and we are convinced that we can jointly offer exciting opportunities to our staff, suppliers and customers."
The integration philosophy deserves examination. IMCD didn't gut the acquired companies. They kept the people, preserved the local relationships, and added platform capabilities—IT systems, supplier introductions, formulation expertise. This approach minimized disruption while capturing synergies over time. It also kept acquisition multiples reasonable by preserving seller goodwill; family owners didn't feel they were selling their life's work to asset-strippers.
The Business Model Deep Dive: Why Specialty Distribution is Different
The Specialty vs. Commodity Distinction
Don't make the mistake of believing that there isn't a big difference between commodity and specialty chemicals distribution. There is, and the impact on the financials is material. Given the lower price transparency, the importance of specialty chemicals and formulation advice, IMCD and Azelis' businesses are much more profitable, resilient and generate higher returns.
The distinction between specialty and commodity chemicals is fundamental to understanding IMCD's business model and margins. Due to the high volume, commodity chemicals require a primary focus on supply chain infrastructure and efficiencies of scale. Therefore, commodity chemical distributors are generally more asset-intensive than speciality chemicals distributors and require much less technical know-how and expertise.
Speciality chemicals distributors are generally less impacted by price fluctuations of basic raw materials owing to the fact that the products within their portfolios are highly functional, relatively low volume and are not easily replaced. This resilience during commodity price swings means more predictable earnings.
The Technical Sales Model
In addition to providing customers with the necessary technical expertise and services (e.g., warehousing, packaging, labelling, regulatory compliance), specialty chemicals distributors bundle many products and provide customers with formulation advice; they work with clients to develop new, customised formulations. As such, specialty chemicals distributors have many 'innovation labs', creating a strong value-add for customers (and hence higher margins). In short, specialty chemicals distributors are a platform, linking many large suppliers to many small manufacturers.
Chemical suppliers typically service the larger customers directly but utilise the skills and market coverage of a speciality distribution company to serve the small and mid-sized accounts. In effect, the speciality chemical distribution company acts as a cost effective extension of the suppliers' sales and marketing 'arm'. In some cases, where the supplier is based remotely, the distributor will cover all sales activity to all customer types in the region. In most cases the distributor will have local warehousing and stock-holding to enable 'just-in-time', small lot deliveries. By working with a speciality distribution company, the supplier benefits from having one loyal business partner as opposed to dealing directly with many small customers, thus simplifying their route-to-market.
Margin Superiority
The company's focus on technical expertise and value-added services has allowed it to maintain higher margins (approximately 10-12% EBITA margin) compared to more commodity-focused distributors like Brenntag (approximately 7-9% EBITA margin).
The gap in terms of OPEX as % of Gross Profit was c. 3% in 2012 between Brenntag and IMCD. It widened to over 9% by 2022. While IMCD is a pure specialty chemical distributor and as such benefits from significantly better economics, the year-on-year changes are indicative of the way the two businesses have been managed.
The Pricing Mechanism
The pricing mechanism is simple. A distributor of specialty chemicals, such as IMCD, regularly receives lists from producers of specialty chemicals with prices for these items. IMCD takes that price – there's (generally) no bargaining or volume discount whatsoever. IMCD then passes these prices on to clients, adding whatever margin it is able to get. That margin is a function of the availability and demand for the product, cogs (logistics, warehousing, etc), and other important value-added services such as formulation advice. Consequently, gross profit (margin) is of great importance in the specialty chemicals distribution industry, rather than overall revenues. Another key metric is the conversion ratio – EBITA / gross profit – and an indication of the efficiency of the business.
M&A as a Core Competency: The Acquisition Machine
IMCD has completed 103 investments and acquisitions. This staggering number reflects a company that has made M&A a core competency rather than an occasional activity.
IMCD NV achieved a gross profit of €1,202 million for the full year 2024. Operating EBITDA increased by 5% on a constant currency basis. The company completed 12 acquisitions, enhancing its Life Science and Industrial segments.
The acquisition strategy is systematic:
Aside from a small number of regional distributors, the speciality chemicals distribution market is still highly fragmented with a lot of, often family owned, local distributors. In general, there is an increasing demand from major suppliers for pan-regional distributors who are capable of offering both business simplification and long-term growth. Due to these ever increasing supplier demands, it is anticipated that there will be further consolidation within the sector whilst maintaining a continued focus on delivering local excellence and expertise.
There is an increasing trend towards outsourcing of sales, marketing and distribution to a more limited number of third party distributors. The greater complexity in the breadth of speciality products, lower order volumes and specific customer requirements in the various end markets are expected to drive outsourcing to a decreasing number of speciality chemicals distributors. Suppliers in sophisticated markets are generally looking for more structured pan-regional management of sales and distribution. By entering into sole third-party rights of distribution relationships with a preferred distribution partner for multiple countries or regions, suppliers are able to significantly simplify and optimise their route-to-market. In sophisticated markets increasing regulation will require chemical distributors to obtain a certain minimum scale in order for them to be able to fully comply with the requirements at an affordable cost.
The fragmentation opportunity is enormous. It is difficult to accurately estimate the size of the specialty chemicals distribution market. According to the largest listed pure players – IMCD and Azelis – the market of specialty chemicals is about $800bn. Of this, $650bn is still insourced by the big players themselves; the residual $150bn is the specialty chemicals distribution industry. A big driver of growth will continue to be the outsourcing of the sales, marketing and distribution activities of producers to pure play distributors. Outsourcing is estimated to be roughly 18%, growing ~0.5% per year – that's about $3bn extra revenues per year to be divided amongst specialty chemicals distributors. As a comparison, the largest pure play specialty chemicals distributor (IMCD) generates less than $5bn revenues.
Leadership Transition & The Next Chapter (2023-Present)
For nearly three decades, Piet van der Slikke's fingerprints were on virtually every strategic decision at IMCD. The succession question hung over the company for years: could IMCD thrive without its founder-CEO?
IMCD announced that its Supervisory Board nominated Valerie Diele-Braun to become Chief Executive Officer of IMCD as of January 2024. Valerie would succeed Piet van der Slikke, who in December 2021 announced his intention to retire as CEO in 2024.
Valerie Diele-Braun was CEO of CABB Group GmbH, a leading global fine chemicals player and life science company, manufacturing active ingredients as well as advanced intermediates, and has over 20 years of leadership experience in the speciality chemicals and ingredients industry. She had been a member of IMCD's Supervisory Board as of 30 June 2020.
At IMCD, Valerie Diele-Braun took over leadership in early January 2024. As CEO of the specialty chemicals distributor, she succeeded Piet van der Slikke, who retired.
However, the succession story took an unexpected turn. Marcus Jordan assumed the role of Chief Executive Officer (CEO) of IMCD N.V. as of 28 April 2025. He succeeded Valerie Diele-Braun, who stepped down for personal reasons.
Effective immediately, Marcus Jordan took over as the CEO of IMCD N.V. Having been a vital part of the Management Board since 2022, he had held the role of COO and is known for his extensive experience within the company, spanning 26 years. His previous positions include President of the Americas and Group Development Director. Additionally, Marcus had been involved in strategic roles within IMCD's UK operations and had been part of the Executive Committee since 2014.
The Supervisory Board commented: "With 26 years of experience at IMCD, Marcus has built deep industry expertise and a strong track record on delivering long-term business growth. We value his leadership in recent years in areas such as commercial and operational excellence as well as his genuine drive for digital innovation. The Supervisory Board is confident that Marcus will continue to build on IMCD's strong foundations and create sustainable value for all stakeholders."
IMCD celebrated its 30th anniversary in September 2025. Founded in Rotterdam in 1995, IMCD has grown from a humble base in the Benelux and France into a global leader with more than 5,200 employees across 60+ countries, supported by 110 offices, 80 laboratories and 150 warehouses worldwide. Over three decades, IMCD has transformed distribution into true partnership, co-creating innovative and sustainable solutions with suppliers and customers around the globe.
Current Performance
IMCD announced its full year 2024 results. CEO commented: "I am delighted to share our 2024 results, which demonstrate our agility and strengths to navigate complexity and create opportunities in a challenging and volatile global landscape. After a relatively soft first quarter, we achieved three consecutive quarters of revenue and operating EBITA growth, with organic gross profit growth across all our regions. On a constant currency basis, revenues grew by 8% to EUR 4.7 billion, while operating EBITA rose by 5% to EUR 531 million. We continued our active acquisition strategy by successfully acquiring 12 complementary businesses."
Revenue for Q1 2025 reached €1,260 million, a 9% increase from €1,160 million in Q1 2024. The company continues to execute its strategy of organic growth supplemented by disciplined acquisitions.
The company achieved gross profit of €927 million for the first nine months of 2025, representing a 5% increase on a constant currency basis compared to the same period in 2024. Operating EBITA grew more modestly at 1% on a constant currency basis, reaching €394 million.
Playbook: Business & Investing Lessons
IMCD's journey from conglomerate carve-out to global specialty chemicals leader offers several lessons for investors and operators:
1. The Power of Specialty Focus
IMCD resisted the temptation to move into commodities where volumes are larger but margins thinner. This discipline—saying no to adjacent opportunities that don't fit the core model—preserved the economics that made the company attractive.
2. Technical Sales as Moat
IMCD's investment in application engineers, formulation scientists, and innovation labs creates switching costs and customer lock-in that commodity distributors cannot replicate. The moat is in the people and expertise, not physical assets.
3. PE as Partner, Not Predator
Three private equity sponsors across 13 years, same management team throughout. This unusual continuity allowed IMCD to compound learning and relationships while accessing PE resources. The lesson: alignment of interests matters more than ownership structure.
4. Disciplined Serial Acquisition
Analysts noted: "Over the past 16 years, IMCD has experienced only one year of EBITA decline, with current EBITA more than ten times greater than in 2009." Furthermore, it delivered an average organic EBITA growth of over 10% from 2016 to 2024. The company's return on capital employed has remained strong, supporting long-term total shareholder returns of around 15% annually over the past decade, surpassing even top performers like Givaudan and Air Liquide.
5. Geographic Expansion Sequencing
Europe first (build the playbook), then Americas (capture the largest market), then Asia-Pacific (access growth). This sequencing allowed IMCD to apply proven methods to each new geography rather than spreading resources too thin.
6. Founder Longevity
Van der Slikke's 29 years of consistent leadership created compounding effects in relationships, institutional knowledge, and cultural cohesion that are nearly impossible to replicate.
7. Asset-Light = Capital Efficient
IMCD focused capital on relationships and expertise rather than infrastructure. The result: high returns on invested capital and cash flow generation that funded the acquisition engine.
Strategic Analysis: Porter's 5 Forces & Hamilton's 7 Powers
Porter's Five Forces
| Force | Assessment | Analysis |
|---|---|---|
| Threat of New Entrants | LOW | In sophisticated markets, increasing regulation will require chemical distributors to obtain a certain minimum scale in order for them to be able to fully comply with the requirements at an affordable cost. Supplier relationships take decades to build; formulation labs require deep expertise. |
| Bargaining Power of Suppliers | MODERATE | Large chemical manufacturers need IMCD for small/mid customer access. There is an increasing trend towards outsourcing of sales, marketing and distribution to a more limited number of third party distributors. The greater complexity in the breadth of speciality products, lower order volumes and specific customer requirements are expected to drive outsourcing to a decreasing number of speciality chemicals distributors. |
| Bargaining Power of Buyers | LOW-MODERATE | IMCD serves approximately 60,000 fragmented customers with high switching costs due to formulation lock-in and technical relationships. No single customer has meaningful negotiating leverage. |
| Threat of Substitutes | VERY LOW | Specialty chemicals are often sole-sourced ingredients in customer formulations. Changing suppliers requires requalification and reformulation—costly and time-consuming for customers. |
| Industry Rivalry | MODERATE | Alphamin, Brenntag, AkzoNobel, and Parchem Fine and Specialty Chemicals are competitors of IMCD. IMCD and Azelis are dedicated distributors of specialty chemicals, and considered to be the best in the sector. Brenntag and Univar are so-called full-liners, distributing both commodity and specialty chemicals. Specialty players like IMCD compete on value-add, not price. |
Hamilton's 7 Powers Framework
| Power | Presence | Analysis |
|---|---|---|
| Scale Economies | âś“ MODERATE | Scale in supplier relationships and geographic coverage matters; shared labs, IT infrastructure, and compliance capabilities provide operating leverage. |
| Network Effects | âś“ STRONG | Two-sided platform dynamics: more suppliers attract more customers and vice versa. Formulation databases create proprietary advantages. Each acquisition adds to the network's value. |
| Switching Costs | ✓ VERY STRONG | Once IMCD's formulations are embedded in customer products, switching requires reformulation and requalification—a time-consuming and risky process. |
| Counter-Positioning | âś“ MODERATE | Commodity distributors (like Brenntag's Essentials division) would have to sacrifice efficiency to match IMCD's high-touch model. Industry sources note that specialties salespeople are more attracted to pure-play distributors like Azelis or IMCD, rather than Brenntag, which is perceived as having less of a specialties DNA. |
| Branding | âś“ WEAK-MODERATE | B2B branding is less powerful than consumer contexts, but IMCD's reputation for technical expertise creates preference among sophisticated suppliers seeking distribution partners. |
| Cornered Resource | âś“ MODERATE | Exclusive distribution agreements with suppliers create territorial monopolies; technical experts with formulation knowledge are difficult to hire away. |
| Process Power | ✓ MODERATE | The acquisition playbook—refined over 100+ deals—represents institutional knowledge that competitors cannot easily replicate. |
Competitive Comparison
IMCD stands out with a cleaner balance sheet, longer public track record, and greater APAC exposure, offering a superior risk-adjusted return profile. IMCD and Azelis are leading, capital-light specialty chemical distributors poised for 20%+ annual returns over 5-10 years. Both benefit from industry consolidation, growing scale, exclusive supplier relationships, and strong integration of acquisitions, supporting steady organic and inorganic growth. Azelis remains attractive but trades at a discount due to higher leverage and private equity overhang.
Deutsche Bank reshuffled its ratings across Europe's chemical distribution sector, adopting a more selective stance as it downgraded Brenntag while upgrading both IMCD and Azelis. Brenntag was cut to Hold from Buy, with the price target slashed to €52 from €75. Analyst Tristan Lamotte said the downgrade reflects timing concerns. He pointed out that Brenntag's higher cyclicality—particularly in its Essentials segment—makes it more exposed to pricing pressure and weaker end-markets. The company recently lowered its EBITA guidance to €950–1,050 million, down from €1.1–1.3 billion, amid signs of volume and margin stress. By contrast, IMCD was upgraded to Buy.
Key Metrics for Investors to Monitor
For long-term fundamental investors tracking IMCD's ongoing performance, three KPIs stand out as most critical:
1. Gross Profit Growth (Organic)
Gross profit (margin) is of great importance in the specialty chemicals distribution industry, rather than overall revenues. Because IMCD's pricing passes through supplier cost changes, revenue can move without underlying volume growth. Organic gross profit growth reveals true market share gains and pricing power independent of acquisition effects.
2. Conversion Ratio (EBITA / Gross Profit)
Another key metric is the conversion ratio – EBITA / gross profit – and an indication of the efficiency of the business. This measures how efficiently IMCD converts its value-added margin into operating profit. The conversion margin was 44.2% in 2024 compared with 45.8% in 2023. Deterioration would signal either competitive pressure or cost inflation; improvement would suggest operating leverage.
3. Net Debt / Operating EBITDA
Leverage, calculated on the basis of acquisitions, was 2.2 times EBITDA at 31 December 2024 (31 December 2023: 2.3). Actual leverage at 31 December 2024 was 2.1 times EBITDA. Given IMCD's acquisition-dependent growth model, balance sheet capacity constrains future deals. The leverage ratio rose to 2.6 in 2025, compared to 2.2 at the end of 2024. Watching leverage trends reveals how much runway remains for acquisitions without equity dilution.
Risks & Regulatory Considerations
Current Challenges:
The net result decreased by 9% in Q3 2025, reflecting ongoing macroeconomic pressures. Risks include: global economic uncertainties and soft demand that could impact future performance; increased competition from Chinese firms poses a threat to market share; currency headwinds in APAC and Americas regions may affect profitability; and ongoing pricing pressure could squeeze margins.
One area of potential concern is IMCD's increasing debt levels. The company's net debt reached €1,543 million in H1 2025, with a net debt ratio of 2.6, up from 2.2 at the end of 2024. While still below the company's covenant limit of 4.25, this trend bears watching.
Leadership Transition Risk:
The departure of founder-CEO Van der Slikke after 29 years, followed by the unexpected leadership change from Diele-Braun to Jordan within 16 months, creates some uncertainty. While Jordan's 26 years at IMCD provides continuity, investors should monitor whether the acquisition pace and integration quality remain consistent.
Valuation Considerations:
IMCD today trades on c. 15x 2025E EV/EBITDA which is more than double the multiple of Brenntag. This premium valuation is justified by superior business quality but leaves less margin for error.
The 30-Year Verdict
IMCD celebrated its 30th anniversary in September 2025. Founded in Rotterdam in 1995, IMCD has grown from a humble base in the Benelux and France into a global leader with more than 5,200 employees across 60+ countries, supported by 110 offices, 80 laboratories and 150 warehouses worldwide.
Marcus Jordan, Chief Executive Officer of IMCD, commented: "I am deeply honoured to lead IMCD into its 30th anniversary, a milestone made possible by the vision of our founder, Piet van der Slikke, supported by his trusted CFO, Hans Kooijmans, and driven by an entrepreneurial mindset and a bold purpose: to transform distribution into true partnerships. Our success has always been rooted in people, our employees around the world, our suppliers, and our customers, working together with entrepreneurial spirit, creativity and trust. For three decades, we have grown from a Rotterdam base into a global leader, while staying true to the partnerships that brought us here. As we celebrate today, I look forward with confidence."
From the penthouse of the Wilhelmina Tower to 60+ countries on six continents. From a division within a conglomerate to over €4.7 billion in revenue. From €1.05 billion market cap at IPO to approximately $7.9 billion today.
The IMCD story demonstrates that extraordinary outcomes can emerge from industries that seem mundane on the surface. The key ingredients: strategic clarity, disciplined execution, people-focused culture, and patient capital allocation over decades. These are the building blocks of any compounding machine—and IMCD built one of Europe's finest.
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