Advent International in Deal Talks with Mondo Minerals

Private equity firm Advent International is in exclusive talks to acquire HgCapital’s Mondo Minerals B.V., the company revealed. Specifics on the transaction were not publicized. Guillaume Darbon, a managing director with Advent, and Michael Ogrinz, are working on the deal. Advent was advised by HSBC (M&A), Allen & Overy (Legal), KPMG (Financial and Tax Diligence), BCG (Market Diligence), ERM (Environment) Creative Value / Olivier Quenardel (Industry Advisors). Senior acquisition debt is being arranged by BNP Paribas (acting through Fortis Bank SA.NV), IKB Deutsche Industriebank AG and RBC Capital Markets, and mezzanine acquisition debt by Ares Capital Europe Limited.

PRESS RELEASE:

1 July 2011 – Advent International, the global private equity firm, has the intention to reach an agreement to acquire 100% of Mondo Minerals B.V. (“Mondo” or the “Company”) from HgCapital. Terms of the proposed transaction, which remains subject to certain conditions including works council consultation and customary regulatory approvals, were not disclosed.

Mondo is the number two producer of talc globally, with a particularly strong presence in Europe. The Company is a leading supplier of talc for paper, paints and coatings and plastics applications and has a growing presence in a range of niche end-markets including technical ceramics, food and personal care. Mondo, which is headquartered in Amsterdam, has a secure and well-placed talc ore reserve base in Finland with an estimated resource life of over 70 years. The company also has processing facilities in Finland and The Netherlands.

The intended investment by Advent International will support Mondo’s organic and acquisitive growth plans and entry into new markets with a particular focus on investing in emerging markets, including China, India and South America.

Commenting on the proposed acquisition, Guillaume Darbon, Managing Director of Advent International, said: “Advent has been convinced for some time of the potential to make value-accretive investments in industrial minerals and we very much look forward to working together with Mondo, a well-regarded business with an exceptional European platform. The Company has a strong reputation for processing and supplying high-quality talc products to its broad base of customers across a wide range of industries. Our intention is to grow the business globally, both organically and through the consolidation of regional talc producers and in particular in emerging markets.”

Michael Ogrinz, Director with Advent International, added: “We very much look forward to working with the management team of Mondo, leveraging Advent’s global network and experience of helping companies to enter new markets. We have already identified a number of attractive prospects for the company which have the potential to take Mondo on to become a truly global business.”

Christian Kather, CEO of Mondo, commented: “I, together with the broader management team and employees of Mondo, am firmly convinced of the potential to further build the Company through internationalisation and greater penetration of high-value, high-growth sectors. I am looking forward to working closely with the Advent team to deliver this strategic vision, as I believe they are the right partner for us for this next phase in our development.”

Advent International has been active in the industrial sector for over 20 years and has invested in and supported over 70 industrial companies globally to achieve successful growth. Among Advent’s previous investments in the industrials sector is Boart Longyear, the leading provider of drilling services, tools and equipment for the mining, construction, water and environmental industries worldwide. Advent’s current industrials sector investments include: BOS Solutions, a provider of drilling fluid treatment and recovery solutions to oil and gas exploration and production, H.C. Starck, a leading manufacturer of advanced materials, global leader in refractory metals, Deutek, Romania’s largest decorative paints producer; ABC Supply Co. Inc, a leading US distributor of exterior building materials with 479 locations in 45 states and sales of over $4 billion; and Oxea, one of the world’s leading manufacturers of Oxo chemicals.

Advent was advised by HSBC (M&A), Allen & Overy (Legal), KPMG (Financial and Tax Diligence), BCG (Market Diligence), ERM (Environment) Creative Value / Olivier Quenardel (Industry Advisors). Senior acquisition debt is being arranged by BNP Paribas (acting through Fortis Bank SA.NV), IKB Deutsche Industriebank AG and RBC Capital Markets, and mezzanine acquisition debt by Ares Capital Europe Limited.

The transaction is expected to complete in the third quarter of 2011.

About Advent International

Founded in 1984, Advent International is one of the world’s leading global buyout firms, with offices in 16 countries on four continents. A driving force in international private equity for over 26 years, Advent has built an unparalleled global platform of over 160 investment professionals across Western and Central Europe, North America, Latin America and Asia. The firm focuses on international buyouts, strategic repositioning opportunities and growth buyouts in five core sectors, working actively with management teams to drive revenue growth and earnings improvements in portfolio companies. Since inception, Advent has raised €18.25 billion in private equity capital and, through its buyout programmes, has completed over 260 transactions valued at approximately €42 billion in 35 countries.
For more information, visit www.adventinternational.com.

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