Buyouts group Advent International has sold Polish insulation business Bolix to Berger Paints, one of India’s largest paint manufacturers, for US$38.6m.
It is Advent’s first Central & Eastern European exit since June 2007 when it sold its stake in the Bulgarian Telecommunications Company (BTC) to AIG Capital Partners for €1.08bn. Advent closed its fourth fund for the region in April, raising €1bn.
The acquisition is also another example of the growing strength of Indian corporations on the international M&A stage. Acquisitions by Indian groups of foreign businesses have reached US$28.5bn since the beginning of 2007. Indian trade buyers have bought 43 European companies so far this year, putting them on course to surpass last years figure of 87, according to figures from Thomson Reuters.
Advent acquired Bolix in September 2003 in a management buy-in (MBI). Bolix provides something called Exterior Insulation and Finish Systems, or EIFS for short. This is a type of building product which is used to insulate exterior walls. It can come in the form of foam insulation or thin synthetic coatings.
Since Advent’s acquisition, Bolix has changed from a pure manufacturer of EIFS to a service business, expanded its presence in foreign markets, namely Ukraine, Russia and the Baltic States, which saw export sales almost triple in 2007. The company has also entered the DIY sector and introduced new product ranges.
It has benefited from the strong Central & Eastern European economy and it’s affect on the region’s construction industry. The continuing drive to implement energy efficiency measures also offers considerable growth potential for Bolix’s Exterior Insulation Finish Systems.
Monika Morali-Efinowicz, head of Advent International’s Warsaw office, said: “Bolix’s expansion is a prime example of how Advent can help businesses to build strategic competitive advantage in high-growth markets. The construction industry in Central & Eastern Europe is now one of the fastest growing and most significant worldwide. Advent’s experience in the global construction materials sector undoubtedly played an important role in helping Bolix to find the right partner for the next phase of its development.”