Lone Star buys Esmalglass for €605m

The GP acquired its stake via Lone Star Fund X from Bahrain-based asset management firm Investcorp. The deal was based on a €605m enterprise value, according to a statement.

The deal saw several private equity funds interested in the asset, with Lazard managing the selling process. Lastly, Ivestcorp reap a 4x money return, according to a source familiar with the situation.

The seller said in a statement that during its ownership period the company's EBITDA doubled. Investcorp acquired the business in 2012. More recently, the company acquired Fritta in 2015, extending its business towards the glazes segment.

Lone Star X launched in October 2016 and held its final close in November 2016 on $5.5bn.

Previous funding
In December 2002, 3i acquired a minority stake in the business, backing its MBO for €80m. Subsequently, Ivestcorp acquired a controlling stake in a deal based on €195m EV. The deal marked Investcorp's first transaction in Spain.

Company
Established in 1978 and based in Villareal, Esmalglass produces ceramic colours and glazes, as well as inkjet inks and digital glazes. The company has manufacturing plants in Spain, Brazil, Vietnam, Portugal, Italy, Russia, China, Indonesia, India and Mexico, and exports to 21 countries.

With a headcount of 1,400 people, the business generated €400m in revenues and €80m in EBITDA in 2016, according to the source.

People
Esmalglass – Antonio Blasco, Vicente Bagán (co-CEOs).

Advisers
Equity – Uría Menéndez (legal).
Vendor – Lazard (corporate finance); Jones Day (legal).
Company – Deloitte Corporate Finance (M&A); Russell Bedford (tax).

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• Topics
• Buyouts
• Industrials
• Southern Europe
• Spain
• Lone Star Funds