Investindustrial is exiting Neolith, a Spain-based producer of sintered stone surfaces, in a sale to CVC Capital; co-owners from the Esteve family are also divesting in the deal.
The investment from CVC Fund VIII will support the company’s international growth plans.
Investindustrial executed a series of value creation initiatives with the company, including growing in North American and Asian markets and the launch of new products.
Neolith had EUR 145m in revenues in 2021 and achieved EBITDA CAGR of approximately 20% under the sponsor’s ownership, according to the press release.
Investindustrial invested in Neolith in 2019 through Investindustrial VI. The fund held a final close on its EUR 2bn after just three months on the road. It invests in companies with an enterprise value of around EUR 500m based in Italy, Switzerland, Portugal and Spain across the consumer goods, industrial and services sectors, according to Unquote Data.
In January, Investindustrial hired Evercore to sell Neolith, according to news report at the time. In April 2022, private equity firms Advent and Onex reached the second stage of the bidding process for Neolith alongside CVC, according to another press report. The article also noted that US-based Mohawk Industries, a manufacturer of residential and commercial floors, could have been a fourth bidder in the process.
CVC Fund VIII held a final close on EUR 21.3bn in July 2020 surpassing its target of EUR 17.5bn. The vehicle invests in European and North American companies with enterprise values of around EUR 1bn to EUR 5bn. It deploys equity tickets in the range of EUR 200m-EUR1bn, according to Unquote Data.
Neolith was founded in 2009 and is headquartered in Castellón, Spain. The company produces and designs large-format sintered surfaces which are created from fully natural raw materials. The end products it produces include bathrooms, furniture, and wall claddings. Neolith products are plastic-free, fully recyclable, and consist of natural minerals. It operates across 100 countries and employs 650 staff.
Neolith - Jose Luis Ramon (CEO).
Investindustrial - Andrea Bonomi (chairman).
CVC Capital - Javier de Jaime (managing partner).
Vendor - Evercore Partners (corporate finance); Uría Menéndez (legal); Bain & Company (commercial due diligence); KPMG (financial due diligence).
Management of the German industrial fixings supplier will reinvest with a minority stake
Management and founders will retain a 25% stake in the Spanish IT services group; bolt-ons planned under new owner
Around 40% larger than its predecessor, the new fund was raised in less than six months, managing director Johanna Barr tells Unquote
New majority owner will seek to expand the Finnish green building services specialist across Europe