Polynt-Reichhold, a newly merged company in the specialty chemical sector, has been formed through the merger of Polynt, a portfolio company of Investindustrial since February 2008, and Reichhold, a portfolio company of Black Diamond Capital Management since April 2015. Investindustrial and Black Diamond are equal investors in the new group.
Polynt is one of the world’s largest manufacturers and suppliers of specialties, intermediates and composites polymers used in the industrial, transportation, building and construction, marine, medical, consumer and food additive markets. Polynt, with annual revenues of about $1.5 billion, was founded in 1955 and is led by CEO Rosario Valido. The company has manufacturing operations throughout North and South America, Europe and Asia and is headquartered near Milan in Scanzorosciate, Italy (www.polynt.com).
Reichhold is one of the world’s largest manufacturers of unsaturated polyester resins and a supplier of coating resins used in the industrial, transportation, building and construction, marine, consumer and graphic arts markets. Reichhold has 19 manufacturing operations throughout North and South America, the Middle East, Europe and Asia. The company is headquartered in Research Triangle Park, NC (www.reichhold.com).
“We intend to quickly align the cultures within the combination to support our global leadership position, better serve our customers and create value for our shareholders,” said Mr. Valido, who is now the President and CEO of the new merged company. “With 44 plants across the world the company will be the closest to the local needs of its customers and the just-in-time suppliers of specialty chemicals in the geographies in which they have operations. Our aim is to grow our business together with our customers and to drive the quality of our products toward the highest expectations of the industry.” The new Polynt-Reichhold will have over €2 billion ($2.3 billion) in annual revenues.
Reichhold was founded in 1927 by Henry Reichhold to supply synthetic resins to Ford Motor (through a personal request from Henry Ford) that were used to reduce the drying times of paint, lacquers and varnishes used on the Model-T. This allowed Ford Motor to dramatically increase the speed of its assembly lines.
In 1987 Reichhold was acquired for $540 million by Dainippon Ink and Chemicals (DIC), a Japanese specialty chemical company. In 2005, the Reichhold senior management team led by President and CEO John Gaither, acquired an underperforming Reichhold from DIC for $200 million which was financed entirely by DIC. In September 2014, Reichhold filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code and then in April 2015 the purchase of most of the company’s assets was completed by Black Diamond.
Black Diamond invests in performing and distressed markets through the following three platforms: control distressed/private equity; hedge fund; and collateralized loan obligations. In October 2015, Black Diamond held a final close of its latest fund – BDCM Opportunity Fund IV, LP – at the hard cap of $1.5 billion. The firm was founded in 1995 and is based in Greenwich, CT (www.bdcm.com).
Investindustrial invests in mid-market companies throughout Europe. The firm has a team of more than 75 professionals that are based in offices in Switzerland, Spain, United Kingdom, United States, Luxembourg, and China (www.investindustrial.com).
© 2017 Private Equity Professional | May 20, 2017
