Proposed Carveout from Paris-based Specialty Materials Leader Adds to Global Buyout Firm's Momentum in Europe
LOS ANGELES and PARIS, July 28, 2022 /PRNewswire/ -- Platinum Equity today announced that it has entered into exclusive negotiations to acquire Imerys SA's High Temperature Solutions business (HTS) in a transaction valued at approximately €930 million.
The proposed transaction, which is subject to the fulfillment of customary closing conditions, including the information and consultation of works councils and other regulatory approvals, is expected to be completed by the end of the year.
HTS is a leading global provider of refractory solutions serving more than 6,000 customers in the iron and steel, thermal and foundry markets. The business, which generated revenues of €801 million in 2021, employs approximately 2,800 people across 36 industrial sites in 16 countries.
"We have great respect for the Imerys team, which has been an excellent steward of the HTS business for many years. We appreciate their confidence in our ability to deliver a transaction that is opportune for everyone involved," said Platinum Equity Partner Louis Samson, who oversees the firm's European operations. "Platinum's carveout expertise and ability to manage through complex situations once again differentiated us. We are excited to add HTS to our growing pan-European portfolio and to support its new chapter of growth."
Alessandro Dazza, CEO of Imerys said: "I would like to thank the HTS teams for their hard work, unwavering commitment and strong contribution to the Group over the years. HTS is a fantastic business, a world leader in its field, with a highly talented workforce, and it has demonstrated its potential for growth. We have chosen Platinum Equity for its industrial vision, open support for the management and commitment to further contribute to the HTS growth and development. This divestment is a significant milestone in the Group's refocusing efforts around its core, high-growth specialty minerals business aligned with global mega trends."
HTS products primarily serve the construction, industrial equipment and automotive end markets, which are all sectors in which Platinum Equity has made significant investments. Platinum Equity has also owned several companies in the materials space, including steel processors Ryerson and PNA Group, and Kymera, which produces a variety of specialty materials, powders, pastes and granules used in a wide range of metallurgical, chemical and industrial processes.
"We have a lot of experience investing in industrials businesses and the materials sector in particular. The high-temperature solutions industry is highly fragmented and HTS is a scalable platform with meaningful opportunities to grow," said Platinum Equity Managing Director Malik Vorderwuelbecke. "We expect to leverage the company's strong foundation and impressive technical capabilities to accelerate its growth, both organically and through targeted M&A investments in key product areas and geographies. We look forward to working with the company's leadership team and supporting its long-term growth plans."
Michel Cornelissen, the Imerys executive who has led the HTS business since 2018, will continue as CEO of HTS following the proposed transition to new ownership.
The HTS acquisition will further expand Platinum Equity's growing portfolio of European investments.
"We have had a lot of success as a transaction partner in Europe and are committed to continuing to invest the region," added Mr. Samson.
Other current European Platinum Equity investments include: European vacation rentals group Awaze (London); private label sweet biscuits manufacturer Biscuit International (Paris); global marine contractor De Wave Group (Genoa, Italy); wine producer Fantini Group Vini (Ortona, Italy); seafood provider Iberconsa (Vigo, Spain); UK property services firm Leaders Romans Group (Berkshire, England); and environmental services business Urbaser (Madrid).
National Bank Financial Inc. is serving as financial advisor to Platinum Equity on the acquisition of HTS. Kirkland & Ellis LLP is providing legal counsel to Platinum Equity on the transaction.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $36 billion of assets under management and a portfolio of approximately 50 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners V, a $10 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 27 years Platinum Equity has completed more than 350 acquisitions.
Dan Whelan, Platinum Equity
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SOURCE Platinum Equity