Elementis puts sale of Mondo Minerals to Advent on hold

Unquote reported in June that Advent had agreed to sell the Netherlands-based talc producer in a $600m deal to speciality chemicals company Elementis. Elementis yesterday announced that the acquisition is currently on hold.

Elementis is a speciality chemicals company with operations worldwide, employing 1,300 people. Although US-headquartered, Elementis is listed on the London Stock Exchange. Some of its main shareholders, according to the company's website, include Axa Investment Managers (9.98%), APG Asset Management (7.10%), BlackRock (5.59%), Ameriprise Financial (5.02%), FMR (5%), and Aberdeen Asset Managers (4.98%).

Elementis was not available for comment.   

As of June, Mondo's enterprise value amounted to $600m on a cash-free and debt-free basis, equating to an EBITDA multiple of around 13.1x. The acquisition, the existing debt of Elementis and Mondo (which is to be refinanced) and future funding for the enlarged group were all expected to be financed by a rights issue raising $280m, as well as new committed debt facilities of $775m.

Advent bought the business in 2011 from Hg, drawing equity from Advent Global Private Equity VI. The total value of the deal was believed to be between €350-400m, with debt and mezzanine representing some €205m of the total.

Founded in 1967, Mondo is a producer of talc products designed to add value to industrial applications such as paints and plastics. They also have a range of applications within life sciences. Mondo generated revenues of €122m and €31m in EBITDA in 2017. The business employs around 230 people. Headquartered in Amsterdam, Mondo operates mines in Finland and has facilities in China.

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• Topics
• Benelux
• Exits
• Industrials
• Netherlands
• Advent International
• Trade sale