SVP sells Vestolit for €219m to Mexichem

Harriet Bailey
06 August 2014

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Strategic Value Partners (SVP Global) has sold its majority stake in paste PVC producer Vestolit to Mexico-based Mexichem, a specialty chemicals company.

Mexichem acquired the company in cash and assumed liabilities. According to the buyer, the transaction supports its strategy of global growth in high-end specialty products and its intention to expand its European footprint.

SVP stated Vestolit's profitability has grown under its ownership. The company has also begun using more environmentally friendly membrane electrolysis production techniques.

Previous funding
SVP wholly acquired Vestolit in a secondary buyout in September 2006 from a vendor consortium made up of Candover (now Arle Capital Partners), Chase Capital Partners, Advent International and F&C Ventures.

At the time of the deal, SVP said it would follow an investment programme worth €100m in order to establish a new production plant in Marl.

Company
Founded in 1995, Vestolit produces paste PVC for flooring, wallpaper and underbody protection for cars. It also produces high-impact suspension PVC for weather-resistant and energy-efficient windows, as well as alkyl-chlorides for various chemical and industrial applications. Its total installed PVC capacity is 415,000 tons per year.

The Marl-based company generated revenue of €477m in 2013. It has operations in more than 35 countries.

People
Victor Khosla is founder of SVP Global. Michael Traeger is CEO of Vestolit. Antonio Carrillo is CEO of Mexichem.

Advisers
Vendor - Jefferies Group (Legal).
Equity - JPMorgan Chase (Legal).