Carlyle buys Altadia from Lone Star

Harriet Matthews
17 December 2021

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Carlyle Group is to acquire Spain-based ceramic tile business Altadia Group from Lone Star Funds.

Carlyle will partner with the company's original founders, Vincente Bagan and Antonio Blasco, according to a statement.

Lone Star acquired Esmalglass from Investcorp in 2017 in a EUR 605m deal. At the time, Lone Star was deploying via its 2016-vintage, USD 5.6bn Lone Star X vehicle.

Altadia was subsequently formed in 2021 via the merger of Esmalglass and the ceramics unit of Ferro, Ferro Tile Coatings (FTC).

Spanish publication El Economista first reported in May 2021 that Lone Star had mandated Bank of America to advise on the sale of Altadia. The publication initially reported that the sale could value the company in the EUR 1.5bn-2bn range. Expansion reported in July that Citi had been appointed, with a valuation of around EUR 1.5bn anticipated.

As the process continued and information memorandums were distributed in October 2021, La Informacion cited Apollo and CVC Capital Partners as potential bidders. The report added that the company was likely to generate a valuation of EUR 1.5bn-1.6bn, 8x its EUR 200m EBITDA.

Cinco Dias reported earlier in December that Carlyle was in negotiations to buy Altadia, with Expansion later reporting that Carlyle had offered EUR 1.8bn for the business.

Carlyle is currently deploying equity via funds including Carlyle Europe Partners V, which held a final close in October 2019 on EUR 6.4bn.

The GP said in a statement that it intends to leverage its experience in the speciality chemicals sector to support the development of the business, enhancing its research and development platforms and making strategic acquisitions.

Previous funding
In December 2002, 3i acquired a minority stake in Esmalglass in a EUR 80m MBO.

Investcorp acquired a majority stake in the business in 2012 in a EUR 195m deal.

Five years later in 2017, Lone Star acquired the company from Investcorp in a EUR 605m deal.

Company
Headquartered in Castellon, Altadia manufactures intermediate products for the production of ceramic tiles. Its product portfolio includes inkjet inks, body stains, glaze stains, and frits and glazes.

Altadia was formed in 2021, although Esmalglass was originally founded in 1987. The company employs 3,600 staff in 19 countries and posted 2020 revenues of more than EUR 800m.

People
Altadia Group – Vincente Bagan (CEO).
Carlyle Group – Alex Wagenberg (managing director, Carlyle Europe Partners).
Lone Star – Donald Quintin (president).