HQ Equita sells Isolite group to Hitachi Chemical

The addition of Isolite is expected to complement Hitachi Chemical's material technology expertise as well as its automotive business. Hitachi aims to offer a comprehensive solutions portfolio for thermal management and gain market share in the automotive sector.

HQ Equita acquired Isolite using capital from Equita Holding in 2010; since then Isolite has achieved double-digit year-on-year sales growth, according to the firm. The GP notably developed the company's automotive business approach from batch to large-series production. It also introduced automation technology to improve operating efficiency and expanded the sales, R&D design and management teams.

HQ Equita is the mid-cap direct buyout firm of HQ Capital. It focuses mainly on Mittelstand industrial companies with a technological or operating edge.

Previous funding
In May 2006, Cornerstone Capital backed a buyout of Isolite, acquiring 100% of the equity along with the company's management for an undisclosed sum. In 2010, HQ Equita won an auction run by Unicredit to acquire the company, of which Cornerstone owned 40% by then.

Company
Founded in 1978 and headquartered in Ludwigshafen, Isolite is a thermal and acoustic management products company with eight branches worldwide. The company makes systems for the aviation, turbo machinery, automotive and large engine manufacturing industries to withstand temperatures between 400 and 1,600 degrees celsius. The company employs 410 staff and generated turnover of €65m in 2016.

People
HQ Equita – Hans Moock (managing director).
Hitachi Chemical – Hiroyuki Yamashita (vice-president).
Isolite – Christian Eck (managing director).

Advisers
Equity – DC Advisory (M&A); Alvarez & Marsal (financial due diligence); Berylls Strategy Advisors (commercial due diligence); Watson Farley & Williams (legal, tax).

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