Advent International has agreed to acquire the Coating Resins business of Cytec Industries for $1.1 billion. The transaction is expected to be completed in the first quarter of 2013.
Cytec’s Coating Resins business develops, produces and sells synthetic resins used for the production of paints and coatings as well as printing inks. The group generated approximately $1.6 billion of revenue in 2011 and is headquartered in Brussels, Belgium and has operations throughout Europe, the United States, and Asia (www.cytec.com).
“We are pleased to be able to invest in a company that has a well-established leadership position in a growing market with a strong technology platform,” said Ronald Ayles, Managing Director and head of Advent’s chemicals practice. “We see several ways to help the business focus on its core competencies, expand its product offering and geographic footprint, and grow its top and bottom lines. There are many avenues of growth and we’re looking forward to working with the management team to support the business on its next stage of development.”
Advent and Cytec estimate that the coating resins industry represents a $30 billion market worldwide that is growing as end users seek cost-efficient and environmentally-friendly technologies for their manufacturing processes and individual applications. Once the transaction has been completed, Advent plans to work closely with the leadership team to build on the business’s already strong positions and deepen its penetration in emerging markets such as Asia.
“We are excited to welcome Advent as our partner as we shape our future as a standalone company,” said Frank Aranzana, President of the coating resins business. “We’re working hard to ensure that we are leaders in the product categories and geographies that present the best growth opportunities now and well into the future.”
Advent has been active in the chemicals industry for more than 25 years and has invested in over 30 companies globally, including many complex carve-outs from chemicals companies. Advent has developed a strong track record in carving out these businesses from multinational corporations and enabling them to become successful independent companies. Advent’s recent investments in the chemicals and materials sector include H.C. Starck, Maxam, Mondo Minerals, Oxea and Vinnolit.
Advent International is a global private equity firm with offices in 16 countries on four continents and has over 170 investment professionals across Western and Central Europe, North America, Latin America and Asia. The firm focuses on international buyouts, strategic restructuring opportunities and growth buyouts in five core sectors: business and financial services; retail and consumer; technology, media and telecom; healthcare and life sciences; and industrial. Since inception, Advent has raised $26 billion in private equity capital and completed more than 270 buyout and private equity transactions (www.adventinternational.com).
© 2012 PEPD • Private Equity’s Leading News Magazine • 10-9-12