Article
Arxada Reorganizes Corporate Structure Ahead of Potential Microbial Solutions Unit Sale; New Entities Remain Part of Restricted Group
Swiss specialty chemicals company Arxada has reorganized its corporate structure to facilitate a separation of its microbial control solutions, or MCS, business from its nutrition, care and environmental, or NCE, business in Europe. The group has replaced Lonza Solutions AG, which houses its European businesses, with two new entities, Arxada AG and Arxada Switzerland AG. The move had sparked concerns over a potential dropdown transaction, however both the new entities will remain part of the restricted group, sources said.
Arxada is planning to shift the microbial business into the Arxada Switzerland AG entity, and the nutrition and care business into the Arxada AG entity, the sources added. According to press reports, Arxada is evaluating selling the European segment of the microbial business.
The Bain Capital and Cinven-owned company is struggling to bring down leverage ahead of its upcoming maturities. The group was 8.9x net levered as of September 2025, while a 2.7 billion Swiss franc ($3.5 billion) 2028 maturity wall that will have to be dealt with by the second half of 2027 is fast approaching, as reported.
Demand has been holding firm in Arxada’s microbial control solutions segment, but the nutrition, care and environmental segment remains a drag on recovery.
Over the years Arxada has chopped and changed reporting across its two major segments and respective divisions. The below charts are generated from the 2021 OM for the 2028 $350 million senior secured notes and 2029 €460 million senior unsecured notes and show how the MCS segment’s sales are skewed more to the Americas, while the NCE division’s sales are based more in EIMEA (Europe, India, Middle East and Africa).
Without up-to-date information for the MCS division in Europe, a back of the envelope valuation for the MCS segment in the EIMEA region would likely be between CHF 500 million-CHF 750 million.
Arxada’s €460 million 2029 SUNs are quoted at 51.5, yielding 29%.
Bain and Cinven provided CHF 1.456 billion of equity in 2021 as part of their buyout of Arxada.
Arxada’s capital structure as of Sept. 30, 2025:
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09/30/2025
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EBITDA Multiple
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|||||||
|---|---|---|---|---|---|---|---|---|
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(CHF in Millions)
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Amount
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Price
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Mkt. Val.
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Maturity
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Rate
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Yield
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Book
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Market
|
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€430M Senior Secured RCF due 2028 1
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318.0
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318.0
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Jan-01-2028
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Reference Rate + 3.250%
|
||||
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EUR Term Loans B due 2028 2
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1,056.0
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1,056.0
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Jul-01-2028
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EURIBOR + 4.000%
|
||||
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USD Term Loans B due 2028 3
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1,091.0
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1,091.0
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Jul-01-2028
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USD LIBOR + 4.000%
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||||
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$350M Senior Secured Notes due 2028 4
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278.0
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278.0
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May-15-2028
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4.750%
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||||
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Total Senior Secured Debt
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2,743.0
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2,743.0
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7.6x
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7.6x
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||||
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€460M Senior Notes due 2029 4
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430.0
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430.0
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May-15-2029
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5.250%
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||||
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$111M Senior Notes due 2029 4
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88.0
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88.0
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May-15-2029
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USD LIBOR + 7.000%
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||||
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Total Senior Debt
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518.0
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518.0
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9.0x
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9.0x
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||||
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Other Debt
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26.0
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26.0
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||||||
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Lease Liabilities 5
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29.0
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29.0
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||||||
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Total Other Debt
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55.0
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55.0
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9.2x
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9.2x
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||||
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Total Debt
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3,316.0
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3,316.0
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9.2x
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9.2x
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||||
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Less: Cash and Equivalents
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(89.0)
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(89.0)
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||||||
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Net Debt
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3,227.0
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3,227.0
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8.9x
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8.9x
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Operating Metrics
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||||||||
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LTM Revenue
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1,885.0
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|||||||
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LTM Reported EBITDA
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361.0
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Liquidity
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||||||||
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RCF Commitments
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402.0
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|||||||
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Less: Drawn
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(318.0)
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Plus: Cash and Equivalents
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89.0
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Total Liquidity
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173.0
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Credit Metrics
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||||||||
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Gross Leverage
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9.2x
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|||||||
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Net Leverage
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8.9x
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|||||||
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Notes:
The capital structure is on a post-IFRS 16 basis. LTM reported EBITDA is the company’s LTM Pro Forma Adjusted EBITDA. RCF commitments amount is converted to CHF as per the company’s presentation. 1. Multicurrency facility, float rate+3.25%. Subject to a springing senior secured net leverage covenant of 9.2x, tested on a quarterly basis only when 40% or more of the applicable revolving credit facilities are drawn at the quarter end date. 2. 0% floor. 3. 0.75% floor. 4. Sustainability-Linked. 5. Reported as of Dec. 31 2024. Pro Forma: CHF 25 million RCF repaid by Oct. 31, 2025. |
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Bain declined to comment.
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