Publicly traded Cytec Industries Inc. said it will sell its coating resins business to buyout shop Advent International for $1.15 billion. The deal is expected to close during the first quarter of 2013. Based in Brussels, the coating resins business produces synthetic resins used in the production of paints and printing inks.
Advent International, one of the leading global private equity firms, today announced that it has agreed to acquire the Coating Resins business of Cytec Industries Inc. (NYSE: CYT), for $1.15 billion. The transaction, subject to regulatory approval and other customary closing conditions, is expected to be completed in Q1 2013.
Cytec’s Coating Resins business is one of the leading global producers of coating resins with a broad product portfolio and leading market and technology positions. The group is headquartered in Brussels, Belgium and has operations throughout Europe, the United States, and Asia. It generated approximately $1.6 billion of revenue in 2011. It develops, produces and sells synthetic resins used for the production of paints and coatings as well as printing inks. The portfolio also includes crosslinkers and additives.
“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 J. 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.
About Advent International
Founded in 1984, Advent 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 28 years, Advent has built an unparalleled global platform of over 170 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 its inception, Advent has raised $26 billion in private equity capital and, through its buyout programs, has completed over 270 transactions in 35 countries.