Italy’s catalysts and polymer materials-maker Polynt spa will partner with US chemical group Reichhold Industries giving birth to a new entitiy reaching about 2.1 billion euros in revenues and 200 million euros in ebitda (see here Investindustrial’s press release and here Reichhold’s press release).
Polynt has been controlled by South European private equity operator Investindustrial since 2008 (through Polimeri Speciali Holding spa) while Reichhold completed a debt-for-equity exchange in April 2015 with a group of investors led by Black Diamond Capital Management and including JP Morgan Investment Management, Third Avenue Management and Simplon Partners. As a result of that transaction, Reichhold is now owned by those and other investors (see here April 2015’s press release).
The new deal, which will be partly financed by GSO Capital Partners (Blackstone group), will be realized through a newco equally owned by Investindustrial and Black Diamond which is going to buy both Polynt and Reichhold, with a very small minoriy of the newco capital to be held by other shareholders, MF-Milano Finanza writes today.
Last September US private equity firms SK Capital and KPS Capital were said to be interested in buying Polynt while Reichhold’s name started to be rumored last March (see here a previous post by BeBeez).
In December 2014 Polynt announced the closing of the acquisition of CCP Composite, a US subsidiary to French oil&energy giant Total sa (see here a previous post by BeBeez). Thanks to that deal Polynt reached 1.3 billion euros in revenues in 2015 an 92 million euros in ebitda and it is said to be valued about 7.5x FY 2015 ebitda or about 700 million euros.
The business combination is expected to create a leading global, vertically-integrated manufacturer of resins for composites and coatings and of other specialized chemicals, including intermediates, plasticizers, additives and compounds.
Investindustrial’s Managing Principal Andrea C. Bonomi said: “We are pleased that Polynt and its highly experienced management team, which has been built to 1.3 billion euros of revenues compared to less than 600 millions at the time of our initial investment, now forms a group with revenues of more than 2 billion euros and with a significant global presence”, Investindustrial ha initially invested in Polynt in 2007 and bought out the 100% of the capital in 2008.