Cinven sells Chryso to Saint-Gobain for €1bn

Saint-Gobain intends to fully finance the acquisition using the proceeds from recent divestments made by the group.

The sale ends a four-year holding period for Cinven, which acquired the company from LBO France via its €7bn fund Cinven VI.

Under Cinven's ownership, the company expanded into new markets and geographies, including the US, and pursued an intensive M&A strategy, completing six bolt-on acquisitions and diversifying its product offering across adjacent segments of the speciality chemicals industry.

Cinven also boosted Chryso's investments in R&D and innovation, which resulted in the production of a new line of additives with the aim of reducing energy and production costs while improving CO2 footprints.

Following this acquisition, Saint-Gobain expects to develop cost synergies of at least €15m through the integration of Chryso's operations within the group and at least €35m of revenue synergies.

Saint-Gobain intends to achieve these results by accelerating Chryso's growth in different geographies, including India and the US; selling Chryso's products in new markets where Saint-Gobain has a strong presence, such as Brazil and South-East Asia; and developing cross-selling opportunities between Chryso and Saint-Gobain Weber across western Europe.

Employing 167,000 staff across 70 countries, Saint-Gobain generated revenues of €38bn and EBITDA of €4.4bn in 2020.

Previous funding
LBO France acquired Chryso in 2014 from Materis, a subsidiary of Wendel, in a deal valuing the company at around €500m. LBO France had been the majority shareholder of Materis since November 2003 and sold the company to Wendel for €2.07bn in May 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.

Chryso employs 1,300 staff across 35 manufacturing facilities and five R&D centres located in Europe, Africa, the Middle East, Asia and the US. The group sells its products in more than 100 countries worldwide.

Chryso generated EBITDA of €85m from revenues of around €400m in the 2020/21 financial year.

People
Saint-Gobain – Pierre-André de Chalendar (chair, CEO); Benoit Bazin (chief operating officer).
Cinven – Pierre Estrade (partner).
Chryso – Thierry Bernard (president, CEO).

Advisers
Acquirer – Lazard (corporate finance); Gide Loyrette Nouel (legal).
Vendor – BCG (corporate finance); Freshfields Bruckhaus Deringer (legal); KPMG (financial due diligence); Deloitte (financial due diligence); ERM (ESG due diligence).
Company – Dechert (legal); Callisto (corporate finance).

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