Deal Announcement 12/18: Chemicals

The Deal

The German PwC M&A team is pleased to announce the successful Closing of Project ADAM, the sale of LEUNA-Tenside to Vantage Specialty Chemicals. PwC M&A acted as exclusive financial advisor to VR Equitypartner and BIP Investment Partners on this transaction.

Capitalising on its strong chemicals expertise and international network, PwC approached a selected number of international corporate and financial investors with a clear strategic or industry logic for this transaction. In a competitive international process setup the team was able to complete the transaction in less than seven months from initial investor approaches.

The acquisition of LEUNA-Tenside provides a strong European platform to Vantage enabling further growth opportunities with its global customers based on LEUNA-Tenside’s strategically located production facilities and complementary product offerings. For LEUNA-Tenside the combination with a strong international partner will support the company’s growth strategy to further internationalise, e.g. to the US market, and allows for numerous cross-selling opportunities.

Transaction documents for LEUNA-Tenside were signed on 21^st November 2018 and the transaction was closed on 31^st December 2018.

LEUNA-Tenside

LEUNA-Tenside, headquartered in Leuna, Germany, is a leader in niche, specialty surfactant production activities in Europe. LEUNA-Tenside’s product portfolio includes anionic surfactants, nonionic surfactants, and emulsifiers that are based on naturally derived ingredients and are used in a wide range of end-markets including personal care, consumer goods as well as industrial applications. LEUNA-Tenside was founded in 1995 as part of a management buyout of a business division of the former Leuna Werke and has various large-scale chemical plants on an area of around 100,000 m². With ca. 130 employees, LEUNA-Tenside generates approx. EUR 60 million in revenues.

VR Equitypartner

Frankfurt-based VR Equitypartner is a leading equity capital financier in Germany, Austria and Switzerland. VR Equitypartner helps family-owned SMEs find strategic solutions to complex financing issues. The typical reasons for taking an equity interest include corporate succession scenarios, a change of shareholders, and financing of growth and expansion. VR Equitypartner’s portfolio currently comprises some 100 investments valued at EUR 500 million.

BIP Investment Partners

Luxembourg-based private equity firm BIP Investment Partners is part of the BIP Group. It operates throughout Europe and particularly in Germany, Austria, Switzerland, France, Belgium and Luxembourg. The company is an equity investor across a range of sectors, with a portfolio currently worth a total of around EUR 300 million. It focuses on individual capital solutions for various transaction situations with the aim of promoting sustainable growth.

Vantage Specialty Chemicals

Vantage is a leading producer of naturally derived, specialty ingredients focused on Personal Care, Food, Consumer Care and Industrial end markets with a portfolio of over 2,000 products. Headquartered in Chicago, IL, Vantage operates a global manufacturing and supply chain across 6 manufacturing facilities, 13 formulation laboratories and 19 distribution warehouses located in 14 countries across the United States, Latin America, South Africa, Europe, and Asia. For more information, visit http://www.vantagespecialties.com.

PwC

The global PricewaterhouseCoopers network is a worldwide association of independent auditing and consulting companies which together employ more than 250,000 people in 158 countries. Our global network comprises nearly 1,550 M&A professionals all over the world, realising approx. 400 successful transactions per year. We specialise in a wide range of independent M&A services including advice on acquisitions and disposals, mergers, public takeovers, privatisations as well as structured financing.

PwC M&A Germany acted as exclusive financial advisor to VR Equitypartner and BIP Investment Partners on this transaction. The transaction was led by Alexander Wenzel (Partner) and executed by an experienced team comprising Wilfried Böckmann (Senior Manager), Mona Henning (Senior Associate), Stefan Pruden (Senior Associate) and Felix Meier (Associate). Martin Schwarzer, co-head of M&A, contributed with established relationships to core stakeholders in the project.