Silverfleet Capital agreed to buy a majority stake in Germany-based Prefere Resins Holding, which makes resins used as binding agents in the industrial and construction sectors. The deal is subject to regulatory approval. Terms of the transaction were not disclosed. The acquisition is Silverfleet’s eighth from its current fund and its third in Germany.
Silverfleet Capital, the Pan-European private equity firm that specialises in buy-to-build, has entered into a binding contract to acquire a majority stake in Prefere Resins Holding GmbH (“Prefere” or the “Company”). Headquartered in Erkner, situated on the outskirts of Berlin, Germany, the Company is a European market leader in the development, production and sale of phenolic and amino resins which are used as a binding agent across the construction, insulation and industrial sectors. Completion is subject to regulatory approval and the terms of the transaction were not disclosed.
Built through the acquisition of plants owned by Neste and Perstorp in 2000, Prefere operates seven production facilities across six European countries (Germany, France, UK, Finland, Poland and Romania), has three R&D sites (Germany, Austria and Finland) and four regional sales offices (Germany, UK, Finland and Austria). Producing over 320 kilotonnes in volume and employing over 320 people, the Company has a diversified product portfolio of more than 900 individual formulations, serving over 300 customers including several large, blue chip multi-national corporations, which are global suppliers of engineered wood products and insulation materials. Applications for Prefere’s products include:
Construction: plywood, laminated veneer lumber, impregnated paper / decorative surfaces
Insulation: glass wool and stone wool
Industrial: abrasives, brake pads / discs, refractory products and fuel, oil and air filters
Following the acquisition, Silverfleet will pursue its buy-to-build investment strategy, enabling Prefere to continue its growth trajectory through: (i) enhancing the Company’s research and development capabilities; (ii) new product launches; and (iii) expanding Prefere’s geographical presence and customer base. Additionally, Silverfleet will draw upon its extensive experience in the chemical sector having made successful investments in Coventya (speciality chemicals manufacturer and supplier), Kalle (synthetic sausage casing manufacturer), Aesica (pharmaceutical contract manufacturer) and Finnish Chemicals (leading global producer of pulp chemicals).
The acquisition of Prefere represents Silverfleet Capital’s eighth investment from its current fund and the third in Germany following recent investments in Pumpenfabrik Wangen (specialist industrial pump manufacturer) and 7days (market leader in the supply of medical workwear).
“Prefere Resins is a European market leader in the production of phenolic and amino resins with a strong heritage. The Company operates in a growing market and serves industries that will continue to be characterised by strong demand in the future. This is a typical Silverfleet investment, where we will be supporting a market leading specialised business achieve its next phase of international growth. We look forward to working closely with the Company’s management team and employees in continuing to develop the business,” comments Klaus Maurer, Partner at Silverfleet’s Munich office who led the transaction.
Arno Knebelkamp, CEO of Prefere Resins, adds: “We are delighted to have found in Silverfleet a pan-European partner for our next growth phase. Silverfleet has made a number of successful investments across the European chemical sector and has an impressive track record in assisting companies achieve their international growth potential. We’re very keen to start executing our development plans together.”
The Silverfleet team that worked on the transaction included Klaus Maurer, Jennifer Regehr, Benjamin Hubner, Jan Kux and Guntram Kieferle, who are based in Silverfleet Capital’s Munich office.
Silverfleet was advised by goetzpartners, ChemAdvice (both Commercial), Investec (M&A), PwC (Financial & Tax), H&Z (Operational), Ramboll (Environmental), Latham & Watkins (Legal, Corporate), Shearman & Sterling (Legal, Financial), and Lincoln (Debt).
For more information:
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+44 20 7282 2913 firstname.lastname@example.org
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France – Kablé Communication Finance
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Germany – Ira Wülfing Kommunikation
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About Prefere Resins:
Prefere Resins is one of the leading phenolic and amino resin manufacturers in Europe. The company’s headquarters in Erkner near Berlin manages seven production sites in six European countries. Thanks to their safety-relevant characteristics in conjunction with their attractive price, phenolic resins are among the most frequently used thermosets and can be used in a wide variety of sectors, including construction, insulation (insulating materials), and industrial (automotive and mechanical engineering). With 320 employees, the company produces in excess of 320,000 metric tons of phenolic and amino resins and suitable additives every year and thus generates sales of over €223 million (2017).
To find out more: http://www.prefereresins.com
About Silverfleet Capital:
Silverfleet Capital has been an active European mid-market private equity investor for more than 30 years. The investment team of 29 executives is based in London, Munich, Paris, Stockholm and Amsterdam and currently manages around €1.2 billion.
Silverfleet Capital’s second independent fund closed in 2015 with commitments of €870 million. Since its close, the fund has completed the following seven investments:
· The Masai Clothing Company, a Danish headquartered women’s fashion retailer
· Coventya, a speciality chemicals business headquartered near Paris, France
· Sigma Components, a UK precision aerospace components manufacturer
· Lifetime Training, an apprenticeship provider to the UK market
· Wangen Pumps, a manufacturer of specialist pumps based in Germany
· Riviera Travel, a leading specialist holiday operator offering a global portfolio of escorted tours and cruises
· 7days, a leading supplier of fashionable medical workwear
Silverfleet Capital seeks to create value through its “buy-to-build” investment strategy. This means working closely with companies to accelerate their growth through investment in new products, production capacity or people, or rolling out successful retail formats or through making follow-on acquisitions. Since 2004, Silverfleet Capital has invested €1.8 billion in 27 companies.
Silverfleet Capital invests in four sectors: i) business and financial services; ii) healthcare; iii) manufacturing; and iv) retail, leisure and consumer goods.
Silverfleet Capital invests in companies with headquarters in four regions:
· the UK and Ireland which accounted for 32% of capital invested since 2004
· the DACH region which received 30% of new investment capital
· the Nordic Region where 20% of invested capital has been deployed
· France, the Benelux region with the remaining 18%1
Silverfleet Capital has a consistently strong realised investment track record. Recent exits include: CCC, one of Europe’s leading German speaking BPO service providers; Cimbria, a Danish agricultural manufacturer2; Kalle, a German artificial sausage casings manufacturer (3.5x cost); OFFICE, the UK shoe retailer (3.4x cost); and Aesica, a leading pharmaceutical CDMO business (3.3x cost).
(1) Includes a US headquartered investment sourced in Belgium
(2) Money multiple not disclosed for legal reasons
To find out more: www.silverfleetcapital.com