RSM carried out the financial, tax, and payroll due diligence for Motul in the acquisition of Chem Arrow

RSM, the 6th largest global network of advisory and audit services, conducted buy-side financial, tax, and payroll due diligence for Motul, a French company specializing in the production of high-performance lubricants for industry, during the acquisition of Chem Arrow, a global leader in manufacturing lubricants for the HVAC (Heating, Ventilation, and Air Conditioning) sector.

A Franco-American team, led by Eric Fougedoire, RSM partner, supported Motul in this acquisition.

With this deal, RSM’s Corporate Finance division demonstrates its ability to assist mid-sized companies in the industrial sector with their international build-up strategies.

Thanks to this partnership, Motul enhances its offering to industrial clients and strengthens its influence in the American continent, where the United States represents the largest global market for metalworking fluids (approximately $2.8 billion). Chem Arrow Corporation enables Motul to nearly double its industrial business.

CHEM ARROW Corp., founded in 1977 and based in California with subsidiaries in Canada and the UK, develops and manufactures metalworking fluids, specialty lubricants, and industrial cleaners. Chem Arrow is a global leader and a major supplier of lubricants for the HVAC equipment sector. Its CVC product range includes low-VOC (volatile organic compound) fluids for stamping and bending heat exchanger fins.

With over 170 years of legacy and experience, Motul is internationally recognized for its expertise and innovation capabilities. By developing a wide range of high-performance and durable products with agility, the group is now positioned as a key player in the development of fluids for mobility and industries.

For about 30 years, the group has already offered metalworking fluids and lubricants for industrial equipment maintenance under the MotulTech brand, marketed in 60 countries.

The pooling of technological expertise in the field of metalworking and the expansion of complementary operations in other geographic locations will make the new entity a highly attractive partner in the global metalworking industry.

The acquisition of CHEM ARROW Corp. supports Motul’s growth in the industrial sector, with the ambition of surpassing €200 million in revenue by 2030, primarily through acquisitions in strategic market segments and geographic areas, thus enriching its offering.

"The acquisition of CHEM ARROW marks an important milestone in our external growth strategy. We see many synergies and development opportunities with this growing player. It will strengthen our know-how and expertise in sustainable development in our industry," says Stéphane Bringues, CEO of MotulTech.

Hamish Mitchell, CEO of Chem Arrow Corporation, states: “This is an exciting opportunity for our distributors, customers, and employees. It will allow us to fully leverage our growth potential. Motul’s global reach will significantly enhance Chem Arrow’s ability to expand into new markets, providing us with a larger international presence. Additionally, our research and development capabilities will be further strengthened by access to strategically located production facilities in Asia, Europe, India, Africa, and South America. We are committed to retaining our valued and talented employees and look forward to welcoming new top-level partners to our team. Retaining the exceptional employees who have contributed to Chem Arrow’s success was a key element in our discussions about this merger.”

The RSM team

The RSM team involved included: