Diversey Holdings, Ltd. provides hygiene, infection prevention, and cleaning solutions.
The company’s integrated suite of solutions combines patented chemicals, dosing and dispensing equipment, cleaning machines, services, and digital analysis; and serves more than 85,000 customers in over 80 countries.
Segments
The company operates through two segments: Institutional and Food & Beverage.
Institutional segment
This segment holds leading market positions in the company’s regional core market...
Diversey Holdings, Ltd. provides hygiene, infection prevention, and cleaning solutions.
The company’s integrated suite of solutions combines patented chemicals, dosing and dispensing equipment, cleaning machines, services, and digital analysis; and serves more than 85,000 customers in over 80 countries.
Segments
The company operates through two segments: Institutional and Food & Beverage.
Institutional segment
This segment holds leading market positions in the company’s regional core markets. The company’s high performance Institutional solutions are designed to enhance cleanliness, safety, environmental sustainability, and efficiency for its customers.
The company offers a broad range of products, services, solutions, equipment and machines, including infection prevention and personal care products, floor and building care chemicals, kitchen and mechanical warewash chemicals and machines, dosing and dispensing equipment, and floor care machines.
The company also offers a range of engineering, consulting and training services related to productivity management, water and energy management and risk management, supported by data provided through its digital solutions. The company delivers these solutions to customers in the Healthcare, Education, Food Service, Retail & Grocery, Hospitality, and Building Service Contractors industries.
The company’s Institutional segment’s revenue base is recurring and stable due to the ‘sticky’ nature of its business model. The company’s cleaning products are consumable in nature and require periodic replacement, generating highly recurring revenue. Additionally, the optimal application of the company’s chemicals is controlled by its proprietary dosing and dispensing equipment installed at customer sites, which increases customer switching costs and generates operating efficiencies for its customers.
Key Institutional products and services include:
Infection Prevention: Hard Surface & Personal Care: The company manufactures, sources, markets, sells and provides services for infection prevention and personal care products. The company’s products are designed to enhance the safety and well-being of its customers’ employees and visitors by reducing the risk of infection at its customers’ facilities. The company’s products are offered in many different formats, including wipes, ready to use chemicals, and concentrates and they are dispensed through portable dosing systems, canisters, spray bottles, large-format totes, and automated wall-mounted dilution systems, among others. Many of the company’s products rely on Diversey-owned propriety technology, including its patented AHP formulation, its IntelliCare dispensers and its MoonBeam 3 UV disinfection technology.
Floor & Building Care Chemicals: The company manufactures, sources, markets, sells and provides services for Floor and Building Care Chemicals. The company’s chemicals are offered in many different formats and tailored towards all segments and sizes of customers. Formats include ready-to-use chemicals, as well as concentrates that are dispensed through portable and automated wall-mounted dosing and dilution control systems.
The company’s floor care products combine chemicals, tools, machines, and services to deliver cleaner, safer floors while lowering operational costs to maintain the floor. Key products include floor strippers, cleaners, maintainers, finishes, sealers, carpet care, concrete and stone care, and wood care. Many of the company’s chemical formulas rely on Diversey-owned propriety polymer technology, including its floor finish Signature and use its patented Diamond floor polishing technology Twister.
The company’s building care products are designed to enhance its customers’ experience by increasing productivity and safety and optimizing the total cost of ownership by reducing the usage of chemicals, water and labor at their sites. Key products include restroom cleaners, glass cleaners, general purpose cleaners, and air care. Many of the company’s products rely on Diversey-owned propriety closed-loop chemical dispensing technologies, including its patented The J-Fill QuattroSelect wall mounted system and its J-Flex/RTD portable dilution technologies. In addition, many customers apply these chemicals and concentrates with Diversey-sourced and owned cleaning tools, including its proprietary TASKI Jonmaster workstations and trolleys, as well as other microfiber floor and surface tools and consumables.
Kitchen & Mechanical Warewash Chemicals and Machines: The company manufactures, sources, markets, sells and provides services for kitchen and mechanical warewash solutions. The company’s products are designed to optimize its customers' resource utilization and chemical efficiency, as well as protect their brand in compliance with hygiene, safety and sustainability standards. The company’s products include a full range of ready-to-use and concentrated chemistry that is available in many different sizes and packaging formats, as well as dosing and dispensing systems that are either portable or wall mounted for spray, bucket and sink applications. The company’s products cover a complete range of applications and methods in kitchen cleaning and mechanical warewash for all sizes of customer sites. Many of the company’s products rely on Diversey-owned patented chemistry formulas, such as Suma Dime or Suma Glass Protect, proprietary dosing and dispensing systems, such as Divermite and DiverFlow, as well as its proprietary connected dishwashing monitoring system IntelliDish.
Fabric Care: The company manufactures, sources, markets, sells and provides services for fabric care. The company’s solutions and application expertise are designed to enhance guest experience, extend linen life, improve hygiene, and promote sustainability. The company’s product offerings consist of a full range of fabric care chemistries to support both on-premise and commercial laundry operations and are available in different packaging formats, including ready-to-use and concentrated solutions and correlating wall mounted dosing and dispensing systems. Many of the company’s products rely on Diversey-owned patented chemistry formulas such as Clax Advance and Xcellence, for low and high temperature washing, as well as its proprietary IntelliLinen dispensing system, which includes remote monitoring.
Dosing & Dispensing Equipment: The company manufactures, markets, sells and provides technical services for dosing and dispensing equipment for a wide variety of applications in all of its core businesses. Applications include dilution and dosing platforms for Infection Prevention, Building Care, Kitchen Care, Mechanical Warewash, Food & Beverage and Fabric Care, among others. The company’s product offering is designed to protect its customers' brands and enhance the safety and sustainability profile of its chemicals while also optimizing productivity and operational costs for its customers. Many of the company’s products rely on Diversey-owned closed-loop chemical dispensing technologies, including its proprietary Divermite wall mounted systems, patented SmartDose portable dosing system, as well as the Diversey owned SafePack technology.
Floor Care Machines: The company manufactures, markets, sells and provides services for floor care machines under the TASKI brand. Products cover all indoor cleaning needs and are designed to enhance the company’s customers’ efficiency and productivity in a wide variety of floor cleaning tasks. The company’s product offering is tailored for all sizes of hard and soft floor types and consists of floor scrubber driers, wet and dry vacuums, single discs, sprayers, steam cleaners and carpet machines.
The TASKI machines rely on many Diversey-owned patented and proprietary features and technologies including the company’s intelligent squeegee design, its IntelliFlow speed dependent solution dosing, and the IntelliTrail fleet management system, among others.
Food & Beverage segment
This segment’s products are designed to maximize the hygiene, safety, and efficiency of the company’s customers’ production and cleaning processes while minimizing their impact on the natural resources they consume. The company offers a broad range of products, solutions, equipment and machines including chemical products, engineering and equipment solutions, knowledge-based services, training through its Diversey Hygiene Academy, and water treatment. The company delivers these solutions to enhance food safety, operational excellence, and sustainability for customers in the Brewing, Beverage, Dairy, Processed Foods, Pharma, Protein and Agriculture industries.
The company’s Food & Beverage segment's revenue base is also recurring and stable. The company’s Cleaning-In-Place (CIP) and Open Plant Systems integrate its chemicals, lubricants, floor care equipment, and cleaning and dispensing tools, while its highly skilled technical application experts help customers achieve production efficiencies through customized solutions that utilize its products. The highly integrated and customized nature of the resulting solutions drive operational efficiencies, as well as high switching costs for its customers, leading to very high customer retention. The addition of water treatment solutions to the company’s Food & Beverage segment also fulfills a longstanding customer need for a bundled solution and offers future opportunities for cross-selling.
Key Food & Beverage products and services include:
Cleaning Products: The company manufactures, sources, markets, sells and provides services for Food & Beverage chemicals. The company’s products consist of a full range of chemistry, equipment and expertise to enhance Food & Beverage manufacturing operations. Key solutions include cleaning-in-place systems, bottle care, conveyor lubrication, membrane cleaning, open plant cleaning, fogging systems, and farm hygiene. Many of the company’s products rely on proprietary chemistry formulas and dosing and dispensing equipment, such as CIP systems which are designed to efficiently clean and disinfect its customers’ enclosed processing equipment, and Divo BottleCare which increases the lifespan of the company’s customers’ equipment and reduces their total glass consumption.
Engineering & Equipment Solutions: The company markets, sells and provides engineering services for its Food & Beverage customers. The company’s solutions include complete hygiene centers for cold aseptic filling, automated external filler and conveyor cleaning, centralized and decentralized foam stations that help reduce overall cleaning times, and hot water washing and pasteurizing equipment for meat harvesting and processing operations. The company is able to respond quickly and efficiently to its customers’ engineering needs, offering full project management for the design and installation of hygiene and sanitation systems.
Knowledge-Based Services: The company markets, sells and provides knowledge-based services (KBS) to the Food & Beverage industry. The company’s KBS offering provides a holistic approach to constantly measure, monitor and improve operational efficiency and food safety throughout its customers’ operations. This offering also addresses key industry challenges related to productivity, water and energy usage, yield management, and food safety. The KBS solutions the company offers are Diversey-owned and include Aquacheck, which is a site-tailored approach to water management, and Diversey-patented CIPTEC technology, which enables determination of the efficiency of CIP and verification of the hygiene of production lines.
Training: The company markets, sells and provides training for the Food & Beverage industry. The Diversey Hygiene Academy provides e-learning for Food & Beverage manufacturing professionals. A wide range of proprietary courses are available in multiple languages and have been accredited by the Continuous Professional Development Certification Service.
Water Treatment: The company manufactures, markets, sells and provides technical services for water treatment within Food & Beverage production facilities. The company’s products are designed to enhance both effectiveness and efficiency, as well as reduce costs by combining Diversey chemicals and equipment with water treatment capabilities to provide a holistic approach to process, water and production hygiene management in the Food & Beverage industry. The company’s products cover a wide range of Diversey-owned chemical and equipment solutions for asset, process and product protection, utility usage, water hygiene and regulatory compliance across heating and cooling systems, specialized Food & Beverage processes, and wastewater treatment.
In 2021, the company entered into a global partnership agreement with Solenis LLC (Solenis), a leading global producer of specialty chemicals for water-intensive industries, including the pulp, paper, oil and gas, petroleum refining, chemical processing, mining, biorefining, power and municipal markets. Solenis' product portfolio includes a broad array of process, functional and water treatment chemistries, as well as state-of-the-art monitoring and control systems. These technologies are used by customers to improve operational efficiencies, enhance product quality, protect plant assets and minimize environmental impact. With this partnership, the company is Solenis’ distribution partner for its complete portfolio of water and process treatment chemicals to the Food & Beverage industry.
Pharmaceutical & Agriculture: The company manufactures, markets, sells and provides services for the Pharmaceutical and Agricultural markets. In addition to providing the necessary products, the company partners with its customers to identify the unique cleaning and disinfection procedures to address their needs and to ensure safe, sustainable and efficient pharmaceutical and agricultural production. The company’s product offering consists of a full range of chemistry, equipment and services. Many of the company;’s products rely on Diversey-owned proprietary chemistry formulas and patented dosing and dispensing equipment, such as the Deosan Dairy Farming.
Sales and Marketing
The company reaches customers through a combination of direct sales channels and distribution channels. Direct sales channels represented approximately 80% of the company’s net sales for the year ended December 31, 2022, including ship-through sales, where the customer relationship is managed by Diversey, while distribution channels represented the remaining 20% of its sales for the year ended December 31, 2022.
The company’s manufacturing network is supported by a global customer facing team of approximately 6,000 sales, marketing, technical service and customer service representatives. The company’s direct sales force manages relationships with its large global and regional customers while its third-party distributor partners enable it to reach end-users that would not be as efficient for it to serve on a direct basis. The company has invested in extensive training for its direct sales force and the management of its distributor network, and it supports its sales force with a deep bench of technical service representatives.
Customers
The company’s Institutional and Food & Beverage segments serve customers across a wide variety of stable and growing end-markets. The company is one of only two global players with the capabilities to serve GSAs, which represents more than 20% of its revenues. Approximately 84% of the company’s customer relationships exceed 10 years in length. The company’s highly fragmented customer base adds to the stability of its revenue streams as activity across different customer groups is diverse and independent of activity among other customer verticals.
The company’s end-users span a wide range of business verticals, including, among other, healthcare, food service, retail and grocery, educational institutions, food and beverage, building service contractors, cash and carry establishments, government institutions, industrial plants, and on-premises laundry. The company’s customers value both the products it sells, as well as its application expertise, deep industry process knowledge, and project engineering capabilities. The company provides customized solutions for customers that are integrated into their sites, which encourage mutual investment in infrastructure and expands its value proposition, resulting in customer loyalty and retention.
Research and Development
The company’s research and development costs, which consist primarily of employee related costs, are expensed as incurred, and were $27.9 million for the year ended December 31, 2022.
Intellectual Property
As of December 31, 2022, the company held approximately 1,300 patents in the United States and in countries throughout the world, and had numerous pending patent applications. The Diversey trademark and a select number of major sub-brands, including CLAX, SUMA and TASKI are material to the company’s business. The company owns the Diversey and sub-brand trademarks used in its business. While the Diversey trademark and certain other assets in the company’s intellectual property portfolio are important.
Environmental Matters, Health and Safety and Governmental Regulations
Various federal, state, local and foreign laws and regulations regulate the company’s products and often require it to obtain pre-market approval of its products and comply with specified requirements. In the U.S., the company must register its sanitizing and disinfecting products with the U.S. Environmental Protection Agency and products intended for controlling microbial growth on humans, animals and processed foods with the U.S. Food and Drug Administration.
History
Diversey Holdings, Ltd., a Cayman Islands company, was founded in 1923. The company was incorporated in 2020.
