An affiliate of HIG Capital (HIG), a private equity investment firm with over EUR26 billion of equity capital under management, is to acquire the European Polyurethane Systems Business in a carve-out transaction from Covestro AG.
The transaction is subject to clearing by the relevant antitrust authorities with closing anticipated for the second half of 2019.
The European Polyurethane Systems Business operates four systems houses in Germany, Denmark, the Netherlands and Spain. It employs approximately 250 full-time employees and generates annual sales of approximately EUR230 million. Systems houses develop and formulate tailor-made ready-to-use chemical blends for the production of a wide range of polyurethane products such as insulation materials, foams, shoe soles, and building materials. The Company serves a wide range of small- and mid-sized customers across Europe and will be led by Dr Jörg Schottek, an experienced executive in the chemical industry.
“Tailor-made polyurethane solutions are used in a wide range of applications across a large number of industries. Systems houses offer vital value-add to customers by providing product development, technical support and supply chain services. Polyurethanes are highly versatile materials and new applications are constantly being developed, which provides further demand for the services the Company offers,” says Dr Johannes Natterer, Managing Director at HIG.
“Following the carve-out from Covestro, the Company will be a leading independent polyurethane systems business in Europe and we aim to further expand its pan-European footprint organically and through add-on acquisitions,” says Dr Holger Kleingarn, Managing Director at HIG. “The business will continue to have strong ties with Covestro as a key supplier of raw materials. We are pleased that with Dr. Jörg Schottek, we have attracted a highly experienced CEO in the chemical industry to run the business.”
Dr Jörg Schottek adds: “The polyurethane systems business of Covestro is known for providing innovative solutions and market-leading services to clients across Europe. As an independent company, we will build on this position and will continue to strive for product excellence, flexibility and impeccable customer service. I look forward to working together with the Company’s experienced and successful management team.”
