The UK chemicals industry remains a cornerstone of the national economy, underpinning critical supply chains across manufacturing, pharmaceuticals, construction, agriculture, and consumer goods. It contributes significantly to GDP, employment, and exports, making it one of the most strategically important sectors.
This report provides a concise overview of current market conditions within the UK chemicals sector, recent M&A activity, emerging trends, and a forward-looking perspective on opportunities and challenges shaping the industry’s future.
Four principles underpin our assessment of the UK chemicals M&A market:
1. Speciality chemicals continue to deliver premium valuations.
Businesses with proprietary formulations, defensible customer relationships and exposure to high-growth end markets attract strong buyer interest and command 8x–10x EBITDA multiples.
2. M&A is selective, not broad-based.
Buyers remain disciplined, with capital increasingly concentrated in assets offering strong margins, recurring revenue, and a clear strategic fit, either aligned to future growth priorities or strengthening existing portfolios.
3. FY26 growth is policy-driven, not cyclical.
The UK’s industrial strategy, net-zero commitments, semiconductor ambitions and increased defence spending are directing capital into specific subsectors. Businesses aligned to these priorities will benefit disproportionately from both organic demand and acquisition interest.
4. Sustained/increasing UK deal activity expected in FY26.
Multiples have recovered from a trough in 2024 to 8.7x EBITDA; private equity dry powder remains substantial; and strong international buyer appetite in 2026 for UK speciality assets underpins at least a sustained level of M&A activity, with the potential to exceed FY25 levels.
Next steps
Set up an initial meeting and discuss the right option for you and your business. Before the meeting it is helpful to consider the following topics:
- What are your objectives? Are you looking to exit or grow your business to the next level?
- Would you like to remain involved going forward? What is your desired timeline for exit/growth?
- What legacy do you want to create for the business and its employees?
- How has your business performed historically, and how robust are your financial systems and revenue contracts?
- What are the skill sets and ambitions of your current management team/family members working within the business?
- What are your plans for growth, and what does your business need to deliver this?
