Investindustrial sale of Benvic to ICIG set to generate 4x money

The deal, which is subject to regulatory approvals expected by year-end, is expected to generate a 4x money return, according to a source familiar with the situation.

Investindustrial was advised by Rothschild and William Blair on the sale process, which kicked off around March and April, the source said. The sale was marketed widely across strategics and sponsors, they added.

The group generates around EUR 500m in revenue and around a 10% EBITDA margin, the source noted.

InvestIndustrial Growth Fund, a EUR 375m lower mid-market strategy, acquired the thermoplastic solutions manufacturer from US-based OpenGate Capital in 2018. The company generated around EUR 200m in sales then, according to a statement.

Under Investindustrial’s ownership, the company made over ten bolt-on acquisitions, which helped expand the company to the US, UK and Eastern Europe – beyond its initial focus in France, Italy and Spain, the source said. The US now accounts for the majority of the group’s sales, the source added.

Its acquisitional strategy also bolstered its product range, including TPE compounds (Thermoplastics Elastomers). This strategy has also helped broaden its end market into medical fields, among others, from its initial focus on building and construction, the source said.

During Investindustrial’s investment period, sales tripled while EBITDA increased by more than four times, the source said.

Benvic’s medical activities in Italy are expected to be retained by Investindustrial funds.

Company
Founded in 1963 as a subsidiary of Solvay, Benvic produces thermoplastic solutions based on PVC, engineering polymers, and bio-polymers compounds. End market users include for its products include the building and construction, medical, aerospace, cabling, consumer, packaging and fluid transport manufacturing. Benvic’s production facilities in France, Italy, Spain, Poland, UK and USA.

People
Investindustrial - Andrea Bonomi (chairman of the industrial advisory board)
Benvic - Luc Mertens (CEO)
ICIG - Achim Riemann (managing director)

Advisors
Investindustrial - Rothschild & Co and William Blair International (M&A advisors); Gide Loyrette Nouel (legal advisor); Boston Consulting Group (commercial vendor due diligence); KPMG (financial, legal, HR and tax vendor due diligence).

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