Investindustrial sold its stake in Specialty Chemicals International Limited, a holding company of the Polynt-Reichhold group. The investment, held indirectly by Global Chemicals Sa ‘rl – an independently managed investment subsidiary of Investindustrial V LP – will be sold to Polynt-Reichhold itself. Black Diamond and Investindustrial, explains a note, became partners in the Company after the merger of Polynt and Reichhold in May 2017, which led to the creation of a new group leader in the field of polyester resins and composite materials. The years following the merger were characterized by constantly improving performance.
The Company’s acquisition of Investindustrial shares, together with the refinancing of existing debt, will take place thanks to approximately € 1.3 billion of new secured and unsecured senior debt lines. JP Morgan affiliates and certain funds managed by Apollo Capital Management LP affiliates have entered into a debt refinancing commitment and funds managed by Black Diamond Capital Management (“Black Diamond”), one of the Company’s current shareholders, have signed a commitment to provide equity.
Following the completion of the Transaction, Black Diamond will become the controlling shareholder of the Company. The Transaction is expected to close within six months, after obtaining all necessary regulatory approvals. The value of the transaction places it among the main European sales operations carried out this year. Morgan Stanley & Co. International plc acts as the Company’s exclusive financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as the Company’s legal advisor, Slaughter and May and Chiomenti Studio Legale as Global Chemicals legal advisor. Morgan Lewis acts as legal counsel for Black Diamond.