Bain's Italmatch invests in FRX Polymers

With this investment, Italmatch Chemicals expects to further strengthen its position in the flame retardant additives segment and expand its product offering and R&D capabilities with FRX polymeric's phosphonates technology used as halogen-free flame retardant for textile, polyurethane foam, coatings and thermoplastics.

This is the fourth bolt-on inked by the company since it was acquired by Bain, following its purchase of US-based Water Science Technologies, a provider of chemical compounds for the water treatment industry earlier this month; the add-on of Manchester-based industrial water treatment specialist BWA Water Additives in December 2018; and its acquisition of Norwegian business Eco Inhibitors in April 2019.

Bain Capital acquired Italmatch from Ardian in June 2018 in a deal valued at around €700m. The GP invested via its fourth Europe-focused fund, Bain Capital Europe IV, which held a final close in 2014 on €3.5bn.

The SBO ended a four-year holding period for Ardian, which bought a 67.7% stake in Italmatch from Mandarin Capital Partners and a minority holding from the Malacalza family in 2014, reaching a total ownership of 88%. The deal valued the company at around €220m at the time.

Italmatch generates annual revenues of €600m, employs a staff of 900 people and operates seven manufacturing plants based in Europe (Italy, Spain, Germany and the UK), five in Asia (China, Japan and India), and five in the US, as well as several distribution subsidiaries located in Brazil, Belgium, China, Japan, India, Poland, Singapore and the US.

Previous funding
FRX Polymers raised a $6m series-A funding round from Capricorn Venture partners and ICV in 2009 and a $15.7m series-B round led by SAM Private Equity in 2011. Subsequently, the company received $13m in debt financing and raised an additional $11m series-B round from BASF Venture Capital and Masdar Capital in 2012. 

Evonik Venture Capital led a $12m series-C for the business in 2014, while Capricorn led a $22m series-D in 2016, with participation from Mubadala Investment Company and FXP Holding, among others.

Company
Established in 2007 and headquartered in Boston, Massachusetts, FRX Polymers specialises in the production of halogen-free polymeric flame retardant additives. The company has two production facilities and employs 26 staff. 

People
Italmatch Chemicals – Sergio Iorio (founder, CEO).
FRX Polymers - Marc Lebel (CEO). 

Advisers
Acquirer - Giovannelli e Associati (legal); Wuersch & Gering (legal); Stlex Studio Legale Tributario (tax); Bennett Thrasher (tax).
Vendor - Lincoln Financial Group (corporate finance); Goodwin Procter (legal).

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