Equistone acquires United Initiators from Vision and Speyside

Equistone invested alongside company management in the deal, which saw Vision Capital reap a 3.5x return on its investment.

Over the five-year holding period, United Initiators strengthened its management team and invested in production facilities, including a new plant in China, according to the vendor. It also benefited from two bolt-on acquisitions: US-based Syrgis Performance Initiators in 2013 and Azelis Peroxides in 2015.

The company's turnover more than doubled with the GP's backing, with €104m in 2011 compared to €236m for 2015. The company's headcount also increased significantly, with 600 full-time staff members at present.

The sale followed up from a competitive bid process, a source familiar with the matter revealed, with interested parties from both the private equity and trade sectors, based in Asia, Europe and the US.

The deal marks a new exit for the Vision Capital Partners VII fund, following up from the IPO of Stockholm-based bank Nordax, valued at SEK 5bn, and the sale of Italian personal hygiene products maker Pantex International to Quadrivio - two deals that were struck last year.

Equistone will keep supporting the group in its global growth strategy, looking to expand its core Western and Asian markets and product ranges. Financial details of the transaction were not disclosed by the GP. 

Previous funding
In September 2011, Vision Capital Partners acquired stakes in two non-core businesses in a portfolio transaction from US-based Speyside Equity for an undisclosed amount. The investor acquired a majority stake in German company United Initiators and a minority stake in US-based Sweet Ovations. Speyside retained a minority stake in United Initiators. Vision Capital invested through its €680m secondaries fund Vision Capital Partners VII, now fully invested.

In July 2015, the company benefited from a €115m recapitalisation provided jointly by HSBC, GE Corporate Finance Bank, Bank of Ireland, ING Bank and Investec Bank.

Company
United Initiators manufactures organic peroxides and persulfates used in energy, coatings, adhesives, energy efficiency, construction and environmentally friendly disinfection. The company offers products across the following ranges: speciality polymers, thermosets, high polymers and chemical specialities. Those are also used in various daily life products including hair bleaching, disinfection, denture cleaning and teeth whitening.

Based in Pullach, Bayern, the company employs 600 full-time employees and holds seven production facilities across Europe, North America and the Asia‐Pacific region.
It registered €236m in revenues for 2015.

People
Equistone - Marc Arens (partner).
Vision Capital - Dave Lamb (head European investment).

Advisers
Equity - N+1 (M&A, debt); Latham & Watkins (legal), Ashurst (legal); P+P Pöllath + Partners (legal); EY (financial due diligence; tax); Novumed (commercial due diligence); Willis Towers Watson (insurance due diligence); HPC (environmental due diligence).
Vendor - Jefferies (M&A); PJT Partners (M&A); Freshfields (legal), PwC (financial due diligence; tax); LEK (commercial due diligence); Environ (environmental due diligence); Aon (insurance due diligence).

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