Arsenal Forms Airnov for Carve-Out

Arsenal Capital Partners has acquired the healthcare packaging business of Clariant and rebranded the business as Airnov Healthcare Packaging. The valuation multiple for this transaction appears later in this article.

Airnov is a maker of barrier packaging used to protect pharmaceutical, nutraceutical and diagnostic products from moisture and oxygen. This includes customizable, drop-in products such as canisters and packets, desiccant systems, and specially designed plastic bottles containing oxygen barrier materials.

Airnov has five production plants in the US, France, India and China and approximately 600 employees. Clariant’s healthcare packaging business webpage can be viewed by clicking HERE.

“The divestment of the healthcare packaging business is the first step of our announced strategy to become a more focused and innovative specialty chemical company,” said Hariolf Kottmann, the executive chairman of Clariant.

The purchase price for Airnov was $312 million (Swiss Franc 308 million) and according to Clariant is equal to 13.2 times adjusted FY 2018 EBITDA. Revenues for the business were $137 million (Swiss Franc 135 million) in FY 2018.

“Airnov has been a very successful corporate subsidiary where there is great potential as a stand-alone business,” said Joe Rooney, an investment partner of Arsenal. “We see a significant growth opportunity here and will bring investment in organic initiatives and a sustained focus on complementary acquisitions.”

With the closing of the transaction, Matthias Brommer will become the president and managing director of Airnov.  Mr. Brommer has been with Clariant since 2011 and has led its healthcare packaging business since 2015.

“We are very excited to emerge as an independent company with a new name, a strong leadership team, and committed investors who will provide the support and resources required as we continue to enhance the products and services our customers require,” said Mr. Brommer. “We look forward to our partnership with the Arsenal team who have strong domain and technical skills in the healthcare, specialty materials, and packaging sectors to help us create a true global leader.”

“Airnov is a strong, well-positioned business and its products are recognized around the world for their performance and technological leadership,” said George Abd, an operating partner of Arsenal. “The company serves a number of growing industry sectors, including healthcare, diagnostics, and nutraceuticals and we look forward to working with Matthias and his leadership team to move the business forward.”

Clariant, the seller of Airnov, is a publicly traded specialty chemicals company with annual revenues of more than $6.7 billion. The company is headquartered near Basel in Muttenz, Switzerland.

“Clariant was an excellent owner in continuing to elevate the business’s strategic importance to its markets,” said Tim Zappala, a senior partner of Arsenal. “We hope to continue the same leadership as owners of Airnov, leveraging both our capabilities and leading franchises in advanced materials and healthcare.”

Arsenal invests in middle-market specialty industrial and healthcare companies that have $100 million to $500 million in enterprise value. The firm has offices in New York and Shanghai.

© 2019 Private Equity Professional | November 1, 2019

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