Cinven to acquire Chryso from LBO France

As reported by unquote" sister publication Debtwire, Cinven preempted the auction after incumbent owner LBO France hired Rothschild to advise with a view of launching the sale process in April.

Cinven made an all-equity offer and will look for a €270m covenant-lite term loan B and a €50m rolling credit facility, according to the same Debtwire report. Leverage on the all-senior deal should represent 5.25x EBITDA.

For LBO France, the sale of Chryso will be the first exit completed for the White Knight IX fund, which closed on €450m earlier this year.

The deal is the fourth investment from Cinven VI, closed on €7m in June last year. The GP recently acquired French medical diagnostics service Labco from 3i for €1.2bn, subsequently merging it with BC Partners-backed Synlab.

According to LBO France, Chryso increased its EBITDA over the holding period from €35m in 2013 to €50m currently. Its turnover, meanwhile, increased from €239m to €300m.

The GP stated it had expanded the group internationally, especially in the Middle East area, India and other Asian countries.

In November last year, Chryso also acquired Moderne Methode and Beton Academy, French manufacturers of products and tools for decorative concrete.

With Cinven's support, the company will look to keep growing organically as well as through external acquisitions, particularly in the Middle East and south-east Asia.

The transaction is subject to approval by Chryso's work councils and relevant authorities.

Previous funding
LBO France acquired Chryso in 2014 as a subsidiary of Wendel-backed Materis group, of which LBO France had been the majority shareholder between November 2003 and May 2006, allowing it to become independent. According to unquote" data, Chryso was valued at €285m. LBO France had sold Materis to Wendel for €2.07bn in 2006.

Company
Founded in 1942 and based in Issy-les-Moulineaux, Chryso develops chemical additives and mixtures that improve the performance of concrete and cement. Its products are used for construction materials, and the repair and maintenance of buildings.

With 29 manufacturing facilities and four R&D centres spread across Europe, Africa, the Middle East, Asia and the US, Chryso currently employs 1,130 people. The group sells its products in more than 100 countries and recorded €300m in sales in 2016, with EBITDA of €50m. 

People
Chryso – Thierry Bernard (CEO).
Cinven – Nicolas Paulmier (partner); Xavier Geismar (partner).
LBO France – Thomas Boulman (partner); Robert Daussun (CEO).

Advisers
Vendor – Rothschild & Cie, Laurent Baril (corporate finance); Sycomore Corporate Finance, François Vigne (corporate finance); Mayer Brown, Xavier Jaspar (legal).

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