Sun European acquires Tenax

Wahida Ahmed
31 May 2022

Tweet
Facebook
LinkedIn
Google plus
Send to

Sun European Partners has acquired Italy-based Tenax, a manufacturer of chemical products and tools for the treatment of materials and stones; the Bombana founding family is reinvesting for a minority stake.

Following this deal, Sun European will accelerate the growth of the business by implementing a buy and build strategy, according to a press release.

Mark Corbidge, managing partner at Sun European, told Unquote that the founding family will own a 20% stake while the remaining equity will be owned by the sponsor. There was a small auction with mainly Italian funds, and Tenax did not want to partner with a trade buyer as they wanted a financial partner that could further professionalise the business, said Corbidge.

Buy-and-build is an important part of the GP's strategy and Corbidge explained the advantages Tenax has in pursuing this strategy. "There are a number of family-owned businesses in Verona; the father of Gino Bombana [President of Tenax] was also the head of the trade association, so he has good connections with local businesses in the area, which we can harness in order to pursue a buy-and-build strategy."

Sun European is currently deploying equity via Sun Capital Partners VIII, which has held a series of first closes on undisclosed amounts, including one held last week and one in December 2021, according to Corbidge. The new vehicle was registered in March 2021 with a target of USD 2.5bn, according to Unquote Data.

The GP's predecessor vehicle, Sun Capital Partners VII , is fully deployed but has reserved some capital to support buy-and-build strategies, according to Corbidge."As we had invested Fund VII in two years, our LPs were keen to invest this financial year rather than last year," Corbidge said.

Company
Founded in 1956 in Verona by the Bombana family, Tenax has established subsidiaries in Tuscany, Germany, Spain, Brazil, Turkey, the US, India and China. It is a producer of mastics, epoxy systems, surface treatments, and abrasives for the treatment of quartz, natural stone and ceramic. Tenax employs around 220 staff. Tenax generates more than 40% of its sales in North America, according to Corbidge.

Tenax - Gino Bombana (president).
Sun European Partners - Mark Corbidge (managing partner).

Advisers
Vendor - Clearwater International (M&A); LAWP (legal , tax); EY (vendor due diligence).
Equity - UniCredit (M&A); Giliberti Triscornia e Associati (legal); EY Parthenon (commercial due diligence), PwC (financial due diligence, tax); ERM (environmental due diligence).