OpenGate Capital said June 20 that it agreed to buy Alfatherm S.p.A. Emerald and PM & Partners are the sellers. Alfatherm, of Varese, Italy, makes rigid, semi-rigid and flexible PVC films.
June 20, 2016 04:00 AM Eastern Daylight Time
LOS ANGELES–(BUSINESS WIRE)–OpenGate Capital, a global private equity firm, announced today that it has signed a definitive agreement with Emerald and PM & Partners, the shareholders and current debt holders for the acquisition of Alfatherm S.p.A. (“Alfatherm”), a manufacturer of rigid, semi-rigid and flexible PVC films. The acquisition is expected to be complete in late June. Terms of the transaction were not disclosed.
Alfatherm was established more than 50 years ago and is the fourth largest European PVC film manufacturer, focused on the production and sale of rigid, semi-rigid and flexible PVC foils that are used for various applications. The business operates three manufacturing sites in the Milan area and has long-term customer relations that reach across 60 countries. Alfatherm products are concentrated across five main business units including:
• Surface decorations
• Capsules and sleeves
• Adhesive tapes
Andrew Nikou, founder, Managing Partner and CEO at OpenGate Capital stated, “Alfatherm is an exciting opportunity for OpenGate Capital given our historical investments in the European PVC sector. Through our pre-fund and fund investments we have built a significant European presence that has enabled us to source incredible opportunities for businesses with untapped potential. Alfatherm will benefit from our deep relationships and operational insight in the PVC market.”
OpenGate Capital has previously invested in the PVC chemical space through several, pre-fund acquisitions in Europe including Kem One SAS, Kem One Innovative Vinyls, Benvic and Profialis. In March of this year, OpenGate announced that through its private equity fund it acquired Energi Fenestration Solutions, a North American manufacturer of rigid PVC window profiles and patio doors. OpenGate will leverage its extensive PVC industry knowledge to enhance the overall operations of Alfatherm.
Sebastien Kiekert Le Moult, Partner at OpenGate Capital, commented, “The path to reaching this agreement has been achieved through a steady and committed process that began in late 2013. As with all of our transactions, we were able to structure a fair value for the Alfatherm owners and stakeholders and design an optimal operational improvement plan for the business.”
Also commenting on the transaction, OpenGate Capital’s Fabien Marcantetti, a Principal based in the firm’s Paris office said, “We are very proud to announce this transaction and excited to unleash a new period of growth for Alfatherm which has done remarkably well under challenging market conditions. We are confident that under OpenGate’s ownership, Alfatherm will benefit significantly from our focus and enthusiasm for growing the business.”
Alfatherm is headquartered in Varese, Italy, generates nearly €100 million in revenue, and has approximately 400 employees.
About OpenGate Capital
OpenGate Capital is a global private equity firm specializing in the acquisition and operation of businesses seeking revitalization through growth and operational improvements. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California and has a European office in Paris, France. OpenGate’s professionals possess the critical skills needed to acquire, transition, operate and build successful businesses. To date, OpenGate Capital has executed more than 40 transactions ranging from corporate divestitures to turnaround acquisitions, industry consolidations and other special situation investments. For more information, please visit www.opengatecapital.com.