OpenGate to buy Solvay subsidiaries in Europe and US

Harriet Matthews
06 January 2021

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OpenGate Capital is to acquire Belgium-headquartered chemical company Solvay's European and US amphoteric surfactant operations.

The transaction is expected to close by the end of 2021, according to a statement. The deal remains subject to regulatory and works council approvals.

The deal comprises the operations in Illinois in the US, where the company will be headquartered, as well as sites in Germany and the UK, plus a tolling business in Turkey.

OpenGate intends to appoint John Foley as CEO of the business on completion of the transaction, the GP said in a statement. Foley has previously held chemical industry roles including as vice-president and general manager of Novecare North America, a division of Solvay.

In June 2020, Belgian publication De Tijd reported that Solvay's amphoteric surfactant operations was one of two business divisions being considered for a sale. The report stated that the unit contributes €10m to Solvay's yearly profit and could yield proceeds of €75m.

The second business division mentioned in the report, Solvay's strontium carbonate production unit, was sold to Latour Capital in November 2020.

OpenGate is currently deploying equity via OpenGate Capital Partners II, which held a final close in November 2019 on $585m. The fund focuses on lower-mid-market businesses in the US and Europe, investing in companies in the industrial, technology, consumer and business services sectors with enterprise values of up to $300m.

OpenGate acquired Belgium-based digital cutting systems manufacturer Kongsberg Precision Cutting Systems from Esko-Graphics in December 2020.

Company
Solvay's European and North American amphoteric surfactant operations are headqartered in University Park (Illinois), with additional sites in Genthin (Germany) and Halifax (UK), as well as a tolling business in Turkey. The company produces amphoterics for use in consumer goods such as body care, hair care and home care products. The company employs 175 people.

People
OpenGate Capital – Andrew Nikou (founder, CEO).
Solvay – Michael Radossich (president of Solvay's Novecare global business unit).

Advisers
Equity – Morgan Lewis (legal); KPMG (financial due diligence); Alvarez & Marsal (tax); MDW Capital (debt advisory)