Investindustrial and Black Diamond invest in chemicals merger of Polynt and Reichhold
Polynt and Reichhold have announced that they have agreed to combine their businesses to form a global company in the coating and composite resins industry with over €2.1 billion ($2.4 billion) in revenues. Polynt-Reichhold (or “the Group”) will be invested into equally by Investindustrial and Black Diamond Capital Management, L.L.C. (“Black Diamond”).
The transaction is subject to customary regulatory approvals and expected to close in the second half of 2016.
This combination further reinforces the Group’s leading position as a global vertically integrated specialty chemicals player, with significant presence both in Europe and North America, a strategy initiated by Polynt with the successful integration of PCCR and CCP in the last five years and now further reinforced by Reichhold’s global scale, extensive product portfolio and R&D competencies. The Group’s excellence in serving large multi-national customers is demonstrated by the fact that the 10 largest customers all have more than 10- year long relationships with the Group.
Investindustrial’s Managing Principal Andrea C. Bonomi added: “We are pleased that Polynt and its highly experienced management team, which has been built to €1.3 billion of revenues compared to less than €600 million at the time of our initial investment, now forms a group with revenues of more than €2 billion and with a significant global presence.”
The debt financing is provided by credit fund manager GSO Capital Partners.
Founded in 1955, Polynt Group (www.polynt.com) is one of the world’s largest manufacturers and suppliers of specialties, intermediates and composites for the industrial, transportation, building and construction, marine, medical, consumer and food additive markets. Polynt has manufacturing operations throughout North and South America, Europe and Asia.
Founded in 1927, Reichhold (www.reichhold.com) is one of the world’s largest manufacturers of unsaturated polyester resins and a leading supplier of coating resins for the industrial, transportation, building and construction, marine, consumer and graphic arts markets. Reichhold has manufacturing operations throughout North and South America, the Middle East, Europe and Asia.
Investindustrial is a leading European group of independently managed investment, holding and advisory companies with €5.6 billion of raised fund capital, which provides industrial solutions and capital to mid -market companies in Europe. Its mission is to actively contribute to the development of the companies in which it invests, by creating growth opportunities and offering global solutions through an entrepreneurial pan- European vision. Investindustrial has a history of more than 25 years of successfully partnering with companies in Europe. Certain companies of the Investindustrial group are authorized by, and subject to regulatory supervision of the FCA in the United Kingdom, the CSSF in Luxembourg and the FINMA in Switzerland. Additional information is available at www.investindustrial.com.
Source: Investindustrial Press Release