ARDIAN sells ESIM Chemicals to Sun European Partners

Ardian

With Ardian’s support, ESIM Chemicals became an independent company and realized significant growth
Frankfurt am Main / Linz, 14 May 2018 – Ardian, a world-leading private investment house, today
announces that it is selling ESIM Chemicals (“ESIM”), a leading Austrian chemical maker to an affiliate
of Sun European Partners LLP (“Sun European Partners”). The two parties have agreed not to reveal
details of the transaction, and completion is subject to approval by the antitrust authorities.
Headquartered in Linz, Austria, ESIM is a global provider of high-quality agricultural and crop
protection chemicals, intermediates and maleic anhydride tree chemicals. The company emerged
after Ardian carved-out the two business units: agrochemicals (Exclusive Synthesis, “ES”), and fine
chemicals (Maleic Anhydride Intermediates & Specialties, “IM”) from DPx Holdings B.V. in August 2015
and subsequently led the business to independence.

ESIM’s primary focus is to partner with chemical companies in the custom synthesis of their unique
compounds. The company has over 75-years of experience in transforming breakthrough ideas into
scalable supplies of high-quality fine chemical products and intermediates.
The intermediates and end products synthesized by the company are important materials for a wide
range of industries: ES is among the top three custom manufacturing partners to the global crop
protection industry as well as other end markets such as food, feed and pharma. IM is a leading
supplier of maleicanhydride specialty ingredients that are used in various end markets such as personal care, nutrition,
paints and coatings as well as pharma.

Over the past three years, Ardian has supported the management team led by CEO, Wolfgang
Hillisch; COO, Harald Gruber; and CFO, Bernhard Kienberger in its efforts to combine ES and IM and to
build a fully stand-alone platform with its proprietary research and development, sales and marketing,
finance and controlling, and IT capabilities. As a result of the integration of the two business areas,
significant synergies and strong organic growth were achieved on the basis of existing and new
customer relationships and mutual operational benefits.
ES has considerably expanded its strong position in exclusive synthesis in the area of crop protection
chemistry and at the same time expanded into other markets such as cosmetics and fragrances,
polymers and coatings. IM has broadened its specialty product portfolio and has tapped into adjacent
and new market niches. Investments in business development and R&D have been essential to this
success. Additionally, the company set up its own laboratories and more than doubled the number of
employees in these areas. Overall, the number of employees has increased over 20% since 2015.
Wolfgang Hillisch, CEO of ESIM, said: “After the successful carve-out, ESIM has demonstrated its
leading reputation as an independent provider for fine and agricultural chemistry and has achieved
significant growth over the last three years. Ardian provided significant support and industry expertise
throughout the process and made a major contribution to our success today. At the same time, we
are convinced that we have found an ideal partner in Sun European Partners to support our envisaged
growth track.”

Wolfgang Pietzsch, Managing Director in Ardian’s German Buyout team, added: “The step towards
independence requires courage and perseverance but also offers large opportunities. The
management and employees of ESIM have managed this process incredibly well and have
demonstrated the company’s great potential. We are proud to have contributed to the successful
development of the business and the optimal foundation for further growth.”
Ardian’s Buyout team has extensive experience in the chemical sector resulting from past and current
investments including Eliokem, CABB, Novacap, Italmatch, and DRT.

ABOUT ARDIAN
Ardian is a world-leading private investment house with assets of US$67bn managed or advised in
Europe, North America and Asia. The company is majority-owned by its employees. It keeps
entrepreneurship at its heart and focuses on delivering excellent investment performance to its global
investor base. Through its commitment to shared outcomes for all stakeholders, Ardian’s activities
fuel individual, corporate and economic growth around the world.
Holding close its core values of excellence, loyalty and entrepreneurship, Ardian maintains a truly
global network, with more than 500 employees working from 13 offices across Europe (Frankfurt,
Jersey, London, Luxembourg, Madrid, Milan, Paris and Zurich), North America (New York, San
Francisco) and Asia (Beijing, Singapore, Tokyo). It manages funds on behalf of about 700 clients
through five pillars of investment expertise: Fund of Funds, Direct Funds, Infrastructure, Real Estate
and Private Debt.
Follow Ardian on Twitter @Ardian
www.ardian.com

ABOUT ESIM
ESIM Chemicals is a leading global provider of high-quality agricultural and crop protection chemicals,
intermediates and maleic anhydride tree chemicals, focusing on partnering with companies in the
custom synthesis of their unique compounds and offer a portfolio of fine chemical products critical to
multiple industries.
The company is headquartered in Linz (Austria) and has more than 75 years of experience in
transforming innovative ideas into scalable supplies of advanced fine chemical products and
intermediates using state of the art facilities.
www.esim-chemicals.com

ADVISORS TO THE TRANSACTION
M&A: Rothschild
Legal: Willkie Farr & Gallagher, Binder Groesswang
Commercial: Advancy
Financial: Ernst & Young
Tax: Ernst & Young
Environmental: Golder Associates
ESG: Indefi
Operational: ChemAdvice
PRESS CONTACTS
ARDIAN
Headland
Carl Leijonhufvud
cleijonhufvud@headlandconsultancy.com
Tel: +44 020 3805 4827

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AkzoNobel to sell Specialty Chemicals to The Carlyle Group and GIC for €10.1 billion

Carlyle

Agreement successfully concludes dual-track process

Akzo Nobel N.V. (AKZA; AKZOY)

  • Key milestone in creating a focused, high performing Paints and Coatings company
  • Unleashing the Specialty Chemicals business to achieve its full potential
  • Thorough process results in best outcome for all stakeholders
  • Vast majority of net proceeds to be returned to shareholders

AkzoNobel today announces the sale of 100% of its Specialty Chemicals business to The Carlyle Group and GIC for an enterprise value of €10.1 billion. This transaction creates two focused and high performing businesses – Paints and Coatings, and Specialty Chemicals – as part of its strategy announced in April 2017. The transaction is expected to be completed before the end of 2018.

The Board of Management and the Supervisory Board concluded that a private sale to The Carlyle Group and GIC is in the best interests of AkzoNobel, Specialty Chemicals and its respective stakeholders, including employees, shareholders and customers. This is the outcome of a thorough dual-track process during which the Boards of AkzoNobel carefully considered both a legal demerger and a private sale.

The Carlyle Group has a global presence and the financial capacity to enable the Specialty Chemicals business achieve its full potential. Carlyle has extensive experience investing in chemicals, unlocking long-term potential and creating value in its portfolio companies.  As a responsible investor Carlyle is focused on driving growth, job creation and long-term financial success. The firm also has a strong focus on Environmental, Social and Governance (ESG) aspects and building positive working relationships with wider stakeholders (employees, unions and local communities).

Thierry Vanlancker, CEO AkzoNobel, said: “Today is a key milestone in creating two focused, high performing businesses, to generate value for all stakeholders. We delivered on our commitment to separate the Specialty Chemicals business and did so ahead of schedule.

“We are very pleased to announce the sale of Specialty Chemicals to The Carlyle Group and GIC. We believe the business is well positioned to capture growth opportunities and further improve performance. Carlyle has significant experience in the chemicals industry and a proven track record when it comes to health, safety, innovation and sustainability.”

Martin Sumner and Zeina Bain, Managing Directors at The Carlyle Group, added: “We are pleased to invest in the Specialty Chemicals business and proud to support a business with such a strong heritage. We are committed to growing the business, and building upon its innovation capability, high quality work force and asset base, as well as its world-class sustainability and environmental practices. We look forward to working with the management team to transition the business to a successful independent company.”

Werner Fuhrmann, CEO of AkzoNobel Specialty Chemicals, said: “Specialty Chemicals is a strong and profitable business with highly skilled and motivated employees serving our customers every day with essential chemistry. As a focused chemicals company we will concentrate our efforts and resources to accelerate profitable growth.

“With this transaction, our business has an opportunity to achieve its full potential and we will continue to fulfil the current and future needs of our customers throughout the world.”

The transaction is subject to customary closing conditions including the relevant regulatory approvals and consultation with the relevant employee representative bodies. AkzoNobel obtained shareholder approval for the separation at an Extraordinary General Meeting held on November 30, 2017.

This transaction values Specialty Chemicals at €10.1 billion (Enterprise Value). On the basis of the year-end balance sheet, AkzoNobel expects to receive a cash payment of €8.9 billion. Following deduction of deal and separation related costs, as well as other previously announced liabilities, the net proceeds are expected to be around €7.5 billion. The vast majority of net proceeds will be distributed to shareholders. Further details will be announced in due course.

Equity for this investment will come from Carlyle Partners VII, Carlyle Europe Partners IV, Carlyle’s longstanding investment partner GIC (which manages Singapore’s foreign reserves) and co-investors.

This is a public announcement by Akzo Nobel N.V. pursuant to section 17 paragraph 1 of the European Market Abuse Regulation (596/2014).

– – –

About Akzo Nobel N.V.

AkzoNobel creates everyday essentials to make people’s lives more liveable and inspiring. As a leading global paints and coatings company and a major producer of specialty chemicals, we supply essential ingredients, essential protection and essential color to industries and consumers worldwide. Backed by a pioneering heritage, our innovative products and sustainable technologies are designed to meet the growing demands of our fast-changing planet, while making life easier. Headquartered in Amsterdam, the Netherlands, we have approximately 45,000 people in around 80 countries, while our portfolio includes well-known brands such as Dulux, Sikkens, International, Interpon and Eka. Consistently ranked as a leader in sustainability, we are dedicated to energizing cities and communities while creating a protected, colorful world where life is improved by what we do.

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $195 billion of assets under management across 317 investment vehicles as of December 31, 2017. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Credit and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,600 people in 31 offices across six continents.

About GIC

GIC is a leading global investment firm established in 1981 to manage Singapore’s foreign reserves. It has investments in over 40 countries. As a disciplined long-term value investor, GIC is uniquely positioned for investments across a wide range of asset classes, including equities, fixed income, private equity, real estate, and infrastructure. In private equity, GIC invests through funds as well as directly in companies, partnering with its fund managers and management teams to help world class businesses achieve their objectives. GIC adds value to boards and management of investee companies by providing advice and access to its global network. Headquartered in Singapore, GIC employs over 1,400 people across 10 offices in key financial cities worldwide. For more information about GIC, please visit www.gic.com.sg

 

For more information:

AkzoNobel Media Relations

T +31 (0)88 – 969 7833

Contact: Diana Abrahams

 

AkzoNobel Investor Relations

T +31 (0)88 – 969 7856

Contact: Lloyd Midwinter

 

The Carlyle Group

Rory Macmillan

rory.macmillan@carlyle.com

+44 (0) 20 7894 1630

 

The Carlyle Group

Katarina Sallerfors

Katarina.sallerfors@carlyle.com

+44 (0)20 7894 1632

 

Safe Harbor Statement

This press release contains statements which address such key issues such as AkzoNobel’s growth strategy, future financial results, market positions, product development, products in the pipeline and product approvals. Such statements should be carefully considered, and it should be understood that many factors could cause forecasted and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more comprehensive discussion of the risk factors affecting our business please see our latest annual report, a copy of which can be found on our website: www.akzonobel.com .

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Toray to acquire TenCate Advanced Composites

Gilde Buy Out

Acquisition to accelerate growth in advanced composites for both companies Almelo, The Netherlands – Koninklijke Ten Cate B.V. (“TenCate”) today announces it has reached an agreement with integrated chemicals and materials group Toray Industries Inc. (“Toray”) on the acquisition of TenCate Advanced Composites (“TCAC”). Toray is committed to further accelerate the growth of TCAC in the coming years, fully supporting TCAC management’s strategy and investment growth plans.

The combination of TCAC and Toray brings together complementary product offerings in high performance composites serving the aerospace, space and communications and high-performance industrial markets. There is strong strategic rationale for the transaction, with clear benefits for both companies. For Toray, the acquisition is an important step in its strategy to accelerate growth and expand its high-performance thermoplastic and thermoset composites offering while benefitting from considerable revenue synergies. For TCAC, the combination with Toray secures access to a source of highly-specified carbon fiber, a crucial component to supporting the needs of customers. The combination of TCAC and Toray will enhance new product development and R&D capabilities and reinforce and expand relationships with customers.

Frank Meurs, TCAC Chief Operations Officer, commented: “We are very pleased with today’s announcement and consider Toray a strong partner for us in terms of cultural fit, complementary product and market segment offerings, focus on R&D, and geographical reach. We have a long history of successful cooperation with Toray and are convinced that we can strengthen each other. We are looking forward to continuing to grow TCAC together with Toray.”

Jan Albers, TenCate CEO, commented: “We are delighted that we have found such a strong strategic partner for TCAC in Toray. The aerospace industry is entering a new growth phase, which requires large investments for continued sustainable growth in this dynamic market. With Toray we have found the right partner to expand TCAC’s leading role in advanced composites.” Both companies have agreed to jointly develop an integration plan to support the envisaged growth plans. Toray expects to retain key management of TCAC following completion of the transaction and respects the existing rights and benefits of the employees of the TCAC group. Toray will acquire TCAC for an enterprise value of € 930 million. The completion of the envisaged transaction is expected in the second half of 2018 and is subject to customary approvals by regulatory authorities. The agreement is also subject to completion of the consultation process with TenCate’s works council. J.P. Morgan Securities plc acted as exclusive financial advisor and Clifford Chance LLP acted as legal advisor to TenCate. Nomura Securities Co., Ltd. acted as financial advisor to Toray.

 

Read more at: http://gilde.com/news/2018/toray-to-acquire-tencate-advanced-composites

 

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Cinven completes acquisition of CHRYSO

Cinven has today completed the acquisition of CHRYSO, a global specialty chemicals group for construction materials.

Cinven’s Industrials and French teams identified CHRYSO as a compelling investment opportunity based on the Group’s strong market position in an attractive industry segment; its successful track record of acquiring and integrating businesses; and its excellent innovation capabilities. CHRYSO is well positioned to benefit from the growing infrastructure spends in emerging countries, as well as housing market recovery in Europe and the US.

CHRYSO represents the 4th investment from The Sixth Cinven Fund.

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