Silverfleet exits Coventya in €420m sale, nets 2.5x money

Harriet Matthews
11 June 2021

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Silverfleet Capital has sold its stake in France-headquartered metal finishing technology developer Coventya to US-based Element Solutions, which has made a €420m cash offer for the business.

The deal is expected to close in Q3 or Q4 2021.

The deal has generated a net money multiple of 2.5x, Siverfleet said in a statement.

Element Solutions said in a statement that the acquisition will expand its offering in the industrial surface treatment space.

Silverfleet acquired Coventya in March 2016. The company posted revenues of €25m in 2000, which had increased to around €120m by the time of Silverfleet's investment.

According to Unquote sister publication Debtwire, KBC and CIC provided a €79m senior debt package to back the deal, plus a revolving credit facility of €8.5m and a capex facility of €8.5m. EMZ Partners provided a mezzanine facility for the transaction.

The GP said in a statement that it has assisted the development of the business through a global buy-and-build strategy, and has also increased its market share in Asia.

Silverfleet invested in Coventya via its second fund, which held a final close in June 2015 on €870m. The fund's other recent realisations include medical workwear producer 7Days, which was sold to Paragon Partners and Chequers Capital in November 2020.

Previous funding
Coventya first entered private equity ownership in November 2000, according to Unquote Data, when Quadriga Capital acquired a majority stake in the business.

In October 2006, Natexis Industrie acquired the company in an SBO from Quadriga.

Equistone acquired the business via another buyout in July 2011, selling the company to Silverfleet almost five years later.

Company
Founded in 1927 and headquartered in Clichy, Coventya develops metal finishing chemical technologies with both functional and decorative functions. The firm serves clients in more than 60 countries from industries including automotive, data storage and consumer goods. The company is expected to post sales of around €160m and adjusted EBITDA of more than €30m in the financial year to September 2021.

People
Element Solutions – Benjamin Gliklich (president, CEO).
Coventya – Erik Weyls (CEO).
Silverfleet Capital – Christian Süss (partner); Gareth Whiley (managing partner); Jennifer Regehr (principal).

Advisers
Vendor – Natixis Partners (corporate finance); Latham & Watkins (legal); PwC (financial due diligence); Paksoy (legal); Eight Advisory (tax).