PE-backed Polynt and Reichhold merge

Amedeo Goria
11 May 2016

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Investindustrial-backed Italian resins producer Polynt and US-based competitor Reichhold, backed by Black Diamond Capital Management, have merged.

Deal value has been estimated at €1bn. As part of the deal, Investindustrial and Black Diamond will invest in the new group. The GPs will retain an equal stake, representing a combined majority share in the business. The Polynt management team will lead the new group.

The merger will create a speciality chemicals group generating a combined turnover of €2.1bn with €200m of EBITDA. The group will have 45 facilities across North and South America, Europe and Asia, employing 2,500 people.

GSO Capital Partners provided debt financing to support the transaction. According to unquote" sister publication Debtwire, the debt facility consisted of a €625m unitranche.

Previous funding
Investindustrial acquired a majority stake in Polynt for €430m in February 2008. At the time of the take-private, the company generated €600m of revenues with €63m of EBITDA.

Company
Founded in 1955 and headquartered in Bergamo, Polynt produces speciality, intermediate and composite chemicals mainly for the industrial, transportation and building industries. The company has a presence in North and South America, Europe and Asia, and generated a turnover of €1.3bn in 2015.

Reichhold was founded in 1927 and is headquartered in Durham, the US. The company produces unsaturated polyester resins and coating resins, targeting the same industries as Polynt. The business employs 1,300 people across its 19 manufacturing sites and five technology centres.

People
Investindustrial – Andrea Bonomi (managing principal); Carl Nauckhoff (senior principal).
Reichhold – John Gaither (chair, CEO).
Polynt – Rosario Valido (chair, CEO).

Advisers
Equity (Investindustrial) – KPMG (financial due diligence); Roland Berger & Partners (commercial due diligence); Alix Partners (commercial due diligence); Golder Associates (environmental due diligence).
Company (Polynt) – Chiomenti Studio Legale (legal); DLA Piper (legal); Simpson Thacher & Bartlett (legal); JP Morgan Securities (financial due diligence); Morgan Stanley & Co (financial due diligence).
Company (Reichhold) – Skadden Arps Slate Meagher & Flom (legal); Schulte Roth & Zabel (legal).