PAI Partners to sell Perstorp to Petronas subsidiary

The acquisition will strengthen PCG’s basic petrochemicals portfolio and selectively diversify it into derivatives, speciality chemicals and solutions, according to a press release. Perstorp will add up to 2.3 million metric tons per annum (mtpa) to PCG’s production capacity and contribute about 28% incremental revenue to PCG. It will also support PCG’s medium-term goal of establishing 30% revenue generated from non-traditional businesses by 2030, according to the press release.

Mergermarket reported in January 2022 that PAI was assessing exit options for Perstorp, noting that the company generated EBITDA of SEK 1.8bn on SEK 9.6bn sales for the nine months to September 2021. According to the report, any deal could value the business at 9x-12x its core earnings.

In FY2021, Perstorp recorded approximately EUR 1.33bn in revenue and EUR 248m in EBITDA, Petronas said in a statement. PAI acquired Perstorp in 2005 for SEK 9.2bn in 2005 through PAI Europe IV, according to Unquote Data. During the course of its ownership of Perstorp, the sponsor implemented a sustainable strategy which included developing products like the production of sustainable methanol from carbon dioxide, residue streams, biogas and green hydrogen at Perstorp’s Stenungsund site, which will replace a significant portion of its fossil-based methanol feedstock by 2026, according to a press release by the sponsor. PAI also encouraged organic growth and market consolidation.

Following this acquisition, PCG will strengthen its basic petrochemicals portfolio and selectively diversify into derivatives, speciality chemicals, and solutions. Both companies will integrate their sustainability strategies and products with the aim of reducing environmental impact and accelerating PCG’s sustainability plan to reach carbon neutrality by 2050, according to a press release.

PAI is investing through funds including PAI Middle Market Buyout Fund, which held a final close in March 2021 on EUR 920m surpassing its target of EUR 700m. The fund invests in companies operating in the business services, consumer, healthcare and industrial sectors across Italy, Spain, Germany, France and the Benelux region with enterprise values in the range of EUR 100m-EUR 300m, according to Unquote Data.

Company
Perstorp is based in Sweden and was established in the 1880s. It develops sustainable solutions for the resins and coatings, engineered fluids, and animal nutrition end-markets in seven manufacturing sites. The company operates in 26 countries including in Europe, Asia and the US, with three research and development centres. It has around 1,500 employees and serves over 2,600 customers worldwide.

People
PAI Partners – Fabrice Fouletier, Ragnar Hellenius (partners).
Perstorp - Jan Secher (CEO).
Petronas Chemicals Group - Ir. Mohd Yusri Mohamed Yusof (CEO).

Advisers
Vendor – Bank of America (corporate finance); Goldman Sachs (corporate finance); Willkie Farr & Gallagher (legal).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Exits
• Nordics
• Industrials
• PAI Partners
• Sweden
• Trade sale