Sun European buys ESIM from Ardian

Oscar Geen
14 May 2018

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Sun European Partners has acquired Austrian agricultural chemicals producer ESIM Chemicals in a secondary buyout from Ardian.

The acquirer drew equity for the deal from Sun Capital Partners VI, a buyout fund that held a final close on $2.1bn in July 2014.

Sun was up against Bridgepoint, Novacap trade bidders including Permira-backed Cabb and Nippon Chemical Industrial, according to Unquote sister publication Mergermarket.

Rothschild ran the auction and marketed the company at €40-45m EBITDA, expecting a valuation between 8-10x, according to Mergermarket. The final valuation was at the lower end of this range, according to a source close to the deal.

Under Ardian's ownership, the company has broadened its product portfolio and expanded into adjacent markets such as cosmetics and fragrances, polymers and coatings. The number of employees has increased by 20% to 400 since 2015.

Previous funding
Ardian acquired ESIM in 2015 in the complex carve-out of two divisions of DPX Holdings: Exclusive Synthesis (ES) and Maleic Anhydride Intermediates & Specialities (IM). The GP drew equity for the transaction from the fifth generation of its LBO fund.

Herter & Co advised Ardian on the all-senior financing, which was arranged by BHF, BNP Paribas, ING, IKB, SEB and UniCredit. The total financing was "well above" €100m, according to a statement.

Company
Headquartered in Linz, Austria, ESIM is a global provider of chemicals for agriculture. The group generated revenues of €179.7m in 2016, of which the ES division generated €80.6m and the IM unit made €86.1m. Other activities accounted for the remaining €16m. It employs 400 people.

People
Sun European Partners – Paul Daccus (managing director).
Ardian – Wolfgang Pietzsch (managing director).
ESIM Chemicals – Wolfgang Hillisch (CEO).

Advisers
Acquirer – Perella Weinberg Partners (M&A); EY (financial due diligence); Herter & Co (debt advisory).
Vendor – Rothschild (corporate finance); Wilkie Farr & Gallagher (legal); Binder Groesswang (legal); Advancy (commercial due diligence); EY (financial due diligence, tax); Golder Associates (ESG due diligence); Indefi (ESG due diligence); ChemAdvice (commercial due diligence).