Silverfleet buys PE-backed Prefere Resins

Oscar Geen
11 May 2018

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Buy-and-build specialist Silverfleet Capital has acquired Erkner-based industrial resin manufacturer Prefere Resins from Capiton and Intermediate Capital Group (ICG).

It is Silverfleet's eighth investment from Silverfleet Capital Partners II – which held a final close on €870m in June 2015 – and the third German investment from that vehicle.

The GP will launch a buy-and-build with Prefere Resins with the aim of expanding its R&D capabilities, product portfolio and geographic footprint.

Prefere Resins appointed Alantra for a strategic review in January, according to Unquote sister publication Debtwire. The company was attracting leverage pitches of up to 5x its €25m EBITDA, according to the report.

Previous funding
The deal ends a four-year holding period for Capiton, which led the company's primary buyout in January 2014. The GP drew equity from Capiton IV for the original buyout and injected further equity alongside ICG in a refinancing in 2015.

Capiton remained the majority shareholder after the refinancing, with ICG holding a significant minority stake and the company's management also remaining invested.

Company
Prefere Resins is a manufacturer and distributor of phenolic resins, such as those used in adhesives, or to increase friction in automotive brakes. The company is headquartered in Erkner, Germany, but has manufacturing operations in six other European countries. The company had a turnover of €220m in 2017 and a staff of 320 employees.

People
Silverfleet Capital – Klaus Maurer (partner); Jennifer Regehr (investment executive); Benjamin Hubner (investment executive); Jan Kux (associate); Guntram Kieferle (analyst).
Prefere Resins – Arno Knebelkamp (CEO).

Advisers
Acquirer – Goetzpartners (commercial due diligence); ChemAdvice (commercial due diligence); Investec (M&A); PwC (financial due diligence); H&Z (operational due diligence); Ramboll (ESG due diligence); Latham & Watkins (legal); Shearman & Sterling (legal); Lincoln (debt advisory).
Vendor – Alantra (corporate finance).