Ardian's Italmatch Chemicals buys Compass

Amedeo Goria
08 June 2016

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Ardian-backed Italmatch Chemicals has wholly acquired US chemicals producer Compass Chemical from US buyout house One Rock Capital Partners.

According to a statement, Italmatch hopes to expand its business in the water treatment segment and further boost its presence in the oil & gas industry with this acquisition.

As part of the deal, the company took control of Compass's manufacturing plant in the US, which is expected to continue the production of Compass's flagship product, Mayoquest.

Following the transaction, One Rock will retain a minority stake in the business.

Previous funding
In September 1997, Investindustrial acquired a minority stake in Italmatch for €11.24m. Subsequently, Argos Soditic acquired a majority stake in a €25.82m MBO in 2001, while in July 2004 Investindustrial bought a majority stake in a €15m SBO. Mandarin Capital Partners then acquired the business in November 2010, with Investindustrial reaping an IRR of 35% and a money multiple of more than 3.5x.

In June 2014, Ardian acquired an 88% stake in the business from Mandarin Capital Partners, with the management team retaining a 12% stake. During Ardian's holding period, in December 2014, Italmatch acquired GRS Chemical Technologies, a soluble polymers and combustion additives producer, and in January 2016 it bought Solvays's activities in desalination, phosphonates and phosphonic acid-based water additives.

Company
Italmatch was founded in 1998 and is headquartered in Genoa. The company produces performance additives for lubricants, water and oil treatments, as well as plastics. The group generated a turnover of €340m in 2015 and operates through six manufacturing plants in Europe and four across China and Japan. The company employs a staff of 500.

Established in 1999 and headquartered in Smyrna in the US, Compass specialises in the production and marketing of phosphonates and additives for water treatment and for the oil & gas market.

People
Ardian – Yann Chareton (managing director).
One Rock Capital Partners – Tony Lee, Scott Spielvogel (managing partners); John Georges, Andrew Georges (partners).
Italmatch – Sergio Iorio (CEO).

Advisers
Equity – Gattai Minoli Agostinelli & Partners (corporate finance); Giovannelli & Associati (legal); Advancy (commercial due diligence); KPMG (financial due diligence, tax); Wills (insurance due diligence).